Builders bring productivity and tax concerns to Canberra
The HIA has taken housing productivity and discretionary trust tax concerns to Canberra policymakers. They warn proposed trust tax changes could hamper home building efforts.
How will proposed discretionary trust tax changes affect my building business?
Builders and contractors operating through discretionary trusts face potential tax changes that could affect business structure and profitability, hitting small building firms hardest.
Key takeaways
- HIA is lobbying Canberra to address barriers holding back housing productivity.
- Proposed tax changes to discretionary trusts could make it harder to build more homes.
- Many small building businesses operate through discretionary trusts, making this a direct concern.
- No specific policy outcomes or timelines were announced from the HIA's engagement.
Related
New trust tax would add growing pressure on small businesses
The Housing Industry Association (HIA) says small businesses across Australia face growing pressure from rising costs, economic uncertainty and more regulation. It argues a proposed new trust tax would add to that burden.
Why it matters: Builders and other trades often run through family or discretionary trusts, so a new trust tax could raise their tax bills and compliance work. That adds to already rising business costs.
ATO ramp up of small business debt collection
Master Builders Australia has published a news item saying the ATO is stepping up its debt collection against small businesses. The text provided gives no further detail on the measures, timing or amounts.
Why it matters: Builders and other trade businesses with outstanding tax debts may face firmer ATO collection action, which could strain cash flow. Details are not in the source text, so check the ATO or Master Builders directly.
HBCF Insurance changes for apartment projects is great news for feasibility
The NSW Government will remove the requirement for Home Building Compensation Fund insurance on low-rise apartment building projects. HIA NSW says the change will help deliver more homes.
Why it matters: Builders and developers in NSW working on low-rise apartments may see lower upfront insurance costs and better project feasibility. That could mean more apartment work for builders and the trades they hire.