Fed Minister giving Tax Breaks
Here at Constructor we are pro active in bringing you the latest info about the building industry and accessing the information from the top, in our last newsletter we spoke to the Executive Director of the HIA Gil King.
We managed to send off some questions about the Building Better Regional Cites policy to the
Federal Minster the Hon Brendan O’Connor MP – Minister for Housing & Minster for Small Business
Below is his reply and some good news on some tax breaks.
The Gillard Government understands that housing affordability is a concern for many households around the nation. Our economy is resilient, but we know that many people are feeling the pinch.
Since coming to office, we have invested an unprecedented $20 billion to make housing more affordable and to tackle the challenge of homelessness. We have made a direct financial contribution to one in every 20 homes built around Australia since 2008.
Through Building Better Regional Cities, communities are receiving funding to help reduce the cost of local infrastructure needed for new housing developments, such as roads, bridges, and water and sewerage works, so that those savings are passed on to home buyers.
This will increase the supply of affordable homes for sale and rent and help alleviate housing supply pressures in their communities.
The funding will also help councils and developers to invest in community infrastructure, such as parks and open spaces, pedestrian and cycle paths, community centres, and recreation facilities.
I would encourage builders interested in taking part in BBRC projects in their area to contact their local government body.
The Gillard Government values the contribution our small builders make to the construction industry. Construction is the single largest sector of small business, and almost 98 per cent of building businesses are small businesses.
That’s why we are cutting red tape and giving tax breaks to small businesses, such as letting them write off the entire value after one year of new assets costing up to $6,500, and $5,000 off the cost of the company car or ute.
Companies which have made a profit in the past will be able to claim a refund on past tax paid if they make a loss the next year, encouraging them to innovate and invest.
When the global financial crisis hit, the Government was quick to invest in building projects in schools and social housing, keeping thousands of small businesses afloat.
Now, with the official cash rate lower than at any time under the Howard Government and housing affordability improving, we can go into 2013 with optimism.