Builders support extension of instant asset write-off but reform is needed

Small businesses in the building and construction industry welcome the Albanese Government’s extension of the $20,000 instant asset write-off but urge both parties to make the scheme permanent and expand eligibility.

Master Builders Australia CEO Denita Wawn said today’s announcement is good news for many building and construction small businesses.

“Both major parties have committed to the instant asset write-off and acknowledge the support this provides for small businesses to grow and invest in their business.

“It is disappointing the ALP hasn’t matched the $30,000 commitment from the Coalition and to make the scheme a permanent fixture, instead relying on Parliament passing new legislation each year, which creates a great deal of uncertainty for businesses who need time to make investment decisions,” Ms Wawn said.

In an environment where construction costs have increased by 40 per cent over the last five years, some small businesses have found themselves no longer eligible to receive this support.

To address this bracket creep, Master Builders Australia would like to see the instant asset write-off expanded to include small businesses (based on ABS headcount definition) with a turnover greater than $10 million.

“In building and construction, turnover thresholds are dependent on the volatile cost of constructing new homes.

“We are seeing in the industry more and more small businesses who are no longer eligible for relief despite rising business costs,” Ms Wawn concluded.

Media contact: Dee Zegarac, National Director, Media & Public Affairs
0400 493 071 | dee.zegarac@masterbuilders.com.au