In case you missed it: 5 things relating to Building and Construction in the 2017 Budget
It’s tax time and the recent Federal budget had plenty of elements that are relevant to those in the construction industry. Construct You have compiled a summary of everything you need to know when it comes to the new budget.
1. The $20,000 instant asset tax write-off is being extended for another year to the end of June 30, 2018 This means you will be able to write off assets up to $20,000 for items like work vehicles, machinery and equipment in capital nature against your business’s taxable income. This initiative has been extended for business with an annual turnover of up to $10 Million, up from $2 Million last year.
2. $60 Million to help Apprentices and Trainees $60 Million has been allocated for a mentoring program aimed at boosting apprentice numbers and completion rate. The program will provide extra support for around 47,000 apprentices. This means apprentices and trainees working in industries undergoing structural changes, such as the South Australian and Victorian automotive sectors, will get access to highly skilled specialist mentors with industry expertise. This mentoring program is mostly targeted to apprentices in regional areas, retrenched, unemployed and mature age people. It will aim to stimulate the supply of skilled workers.
3. Taxable payments reporting system (TPRS) extended to cleaning and courier businesses In the 2012–2013 financial year the Taxable Payments Reporting System (TPRS) was introduced for contractors in the building and construction industries. The TPRS has now been extended to include contractors in the cleaning and courier sectors. Under the TPRS, businesses must report payments made to contractors individually and as an annual total, to the Australian Taxation Office. The government has proposed the measure to come into effect in the 2018 financial year; hence businesses affected will need to start collecting information from July 1, 2017.
4. Employing foreign workers just got more expensive In addition to the abolishment of the 457 Visa system announced by the Prime Minister of Australia announced on 18 April 2017, the government will also introduce a levy on businesses that employ foreign workers. Commencing March 2018, if you are a small business you will have to pay $1200 per year in addition to a one-off $3000 payment. If you run a larger business you will have to pay $1800 per year in addition to a one-off payment of $5000. The levy will only apply on certain skilled visas and money raised will go towards a new Skilled Australian Fund.
5. $8.4 Billion on Inland Rail Project from Melbourne to Brisbane The Australian Rail Track Corporation (ARTC) has been given the responsibility of constructing the Inland Rail Project that will stretch from Melbourne to Brisbane, running across existing tracks that will be upgraded in addition to new tracks. The project is expected to cost around $10 Billion with the budget committing $8.4 Billion in equity investment in ARTC. Construction for the 1700 km in rail is expected to commence in the 2017–18 financial year. Construct You team
The information provided on this blog post is general information only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information you should consider the appropriateness of the information, having regard to your own objectives, financial situation and needs.