Master Builders Australia is bitterly disappointed with Labor’s pledge to ramp up the tax burden for thousands of small and medium building businesses.
Denita Wawn, CEO of Master Builders Australia said, “Labor’s decision to abolish tax cuts for SME builders turning over $10-$50 million per year will deal a harsh blow to SME builders, many of them family businesses. It’s a retrograde step at the expense of local builders and local jobs in local communities around the country.
“Building projects are highly capital intensive and the cost of labour, materials, and equipment mean that there are many ‘mum and dad’ businesses with an annual turnover of more than $10 million. This means that the tax cuts which Labor has committed to repealing are particularly important for our members, the people they employ directly and the sub-contractors they engage.”
Ms Wawn also pointed out that turnover should not be confused with profit. “SME builders typically operate on tight margins and do not take home anything like $10 million, Labor should understand that there are more SMEs in the building and construction industry than any other sector of the economy,” she said.
“Our industry employs in one in 10 Australians and in the last few years has been one of the most important sources of skilled jobs growth. SME builders are at the forefront of this and employ most of the 1.2 million jobs in the construction industry workforce.”