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Federal Budget 2023-24 Submission

federal-budget-2023-24-submission

Master Builders Australia has released its pre-budget submission which highlights the short and long term pressures for the sector in providing for Australia’s future building and infrastructure needs.

The key priorities for the Budget include:

Dealing with industry cost pressures

Resourcing and additional flexibility for government agencies when dealing with building and construction companies whose operations have been hampered by cost spikes, labour shortages and other supply chain complications; and continuous monitoring of the market for materials with a view of taking action against anti-competitive behaviour. Over the long-term, allow for the National Reconstruction Fund to be fully leveraged to expand Australia’s onshore manufacturing and distribution capacity with respect to building materials like timber, steel, and modern manufacturing.

Supporting the construction workforce

Fund a National Partnership Agreement on Quality Careers Education to improve the standard of careers education in secondary schools; develop an apprentice commencement and retention strategy; develop and publish VET quality indicators at the RTO level; refocus apprenticeship incentive payments to better achieve policy objectives; increase the permanent skills visa cap to at least 200,000 in 2023-24 and 2024-25; expand visa eligibility; and pilot additional visa pathways.

Delivering Australia’s housing needs

Release more government land; financial payments to states and territories that are linked to progress in boosting housing supply, planning reforms and taxes imposed on new homes.

Redirect development taxes and charges to social and affordable housing; introduce tax incentives to address the risk and return gap for institutional investors; and expand the size of the Housing Future Fund capital investment from $10 billion to $20 billion.

Investing in infrastructure

Ensure a 10-year rolling pipeline of infrastructure; sufficient resources for the full implementation of the ongoing review of Infrastructure Australia; continue funding for community, city and regional focused infrastructure through genuine partnerships with embedded housing targets in these programs; and resources to ensure small businesses are not precluded from tendering for contracts with federal government and public entities.

Enhance the safety of everyone in the industry

Reverse the decision to abolish the Australian Building and Construction Commission or establish a dedicated division for the industry within the Fair Work Ombudsman with resources available for training, field work, pro-active site visits and rapid response; ensure appropriate resourcing of federal government agencies including the Asbestos Eradication & Safety Agency and the Office of the Federal Safety Commissioner; and budgetary measures that ensure the rights of independent contractors are protected, and that independent contracting continues as a legitimate and necessary form of business engagement.

Achieving the right tax settings

Temporarily expand depreciation allowances to non-residential building work that is productivity boosting in nature and financed by the private sector; extend the Technology Investment Boost and Skills and Training Investment Boost until June 2025 with non-employing businesses eligible; incentives to business through tax breaks for productivity enhancing investments in digital and IT system; and the extension of company tax cuts for businesses over $50 million in turnover.

Simplifying regulation

Commence a deregulation agenda with a meaningful impact and a mechanism where any proposed new regulation is rigorously tested with alternatives considered before introduction; funding under the Australian Building Codes Board Intergovernmental Agreement to be increased to allow for Australian Standards to be accessible to builders free of charge; and resources to facilitate the transfer of all building product chain responsibilities away from the builders using them.

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