- No products in the cart.
Policy area
Economy and Productivity
Stronger building = Stronger economy
The building and construction industry is a significant part of Australia’s economy and sustains over 425,000 businesses. The vast majority of these are small in size, and together they drive innovation, train apprentices, and create jobs across our industry.
1 in 10Working Australians employed by the industry
$3Back into the economy for every $1 invested
425,000+Businesses sustained by building and construction
The issue
What are the challenges?
However, high business taxation levels impede activity in our industry and prevent it from reaching its full potential. This results in new buildings and infrastructure carrying a heavier price tag than they should. Housing affordability is one of the areas which suffers most as a result.
A lower tax burden would reduce the cost of doing business in our industry and help drive real improvements in all our living standards.
Our recommendations
How do we fix them?
01Enhanced depreciation allowances
For a temporary period, enhanced depreciation allowances should be provided to non-residential building work financed by the private sector and shown to be productivity boosting in nature. This could include education, IT, distribution, agricultural, industrial and commercial projects, amongst others.
02Extend the Technology Investment and Skills and Training Boosts
The existing Technology Investment Boost and Skills and Training Boost for small businesses should both be extended to the end of June 2025 and adapted to ensure that non-employing entities like sole traders and partnerships are able to fully avail of the benefits. Given the sharp rise in costs since the announcement of the schemes, consideration should be given to lifting the maximum annual deduction from $100,000 at present to $110,000 to $120,000 going forward.
03Incentives for small business
Incentives to business, particularly small business, including tax breaks for productivity enhancing investment in digital and IT systems; and more generous treatment of capital building works.
04Extend company tax cuts
Extend cuts to company tax for businesses over $50 million turnover.
Policy areas