Labor’s announcement today is another poor attempt to distract from their $200 billion in new and increased taxes.
If Labor cared about tradies they would scrap the new taxes they are planning to introduce, which will directly hurt hundreds of thousands of tradies.
Labor’s plan to scrap negative gearing as we know it and increase the capital gains tax by 50 per cent will have an enormous negative impact on tradies.
The Coalition’s strategic and rational plan for a stronger economy has helped to create more than 1.2 million jobs since we came into government in 2013, and will help create an additional 1.25 million jobs over the next five years, and this plan includes lower taxes so Australians keep more of what they earn.
Independent economic modelling commissioned by the Master Builders Association (MBA) found that by raising taxes on housing over five years, Labor’s policies could result in up to 42,000 fewer new dwellings being built, 32,000 less full time jobs and an $11.8 billion drop in building activity.
A survey released by the Property Council of Australia today found Labor’s property taxes would drive down new housing supply and construction.
Labor’s plan to reverse legislated deductions for personal superannuation contributions will also hit around 800,000 workers, including tradies, by denying them a tax deduction for their super contributions. This places tradies and other small business owners at an unfair disadvantage compared to salary earners who are able to make concessional tax contributions into their super.
Minister for Industry, Science and Technology Karen Andrews said construction industry workers need to feel more confident about being paid on time.
“Getting paid on time is fundamental to the many subcontractors that make up our construction industry,” Minister Andrews said.
“State and territory security of payment laws are in place to preserve cash flow for construction industry subcontractors, but we know insolvencies and late payment issues continue to put hard working Australians out of business.
“The Coalition is working with all jurisdictions through the Building Ministers’ Forum to respond to the national Review of Security of Payment Laws and deliver improvements in security of payment regimes.”
The Review of Security of Payment Laws made 86 recommendations to improve protections for small businesses and address the high insolvency rates in the construction industry.
The legislative responsibility for security of payments rests with the states and territories, and at the Building Ministers’ Forum meeting on 8 February 2019, all state and territory Ministers agreed to develop model legislation for cascading statutory trusts.
Last year the Coalition Government announced an additional $3.7 million to boost the Australian Building and Construction Commission’s ability to enforce the rule of law on building and construction sites, including more inspectors and investigators to support small businesses and sub-contractors when head-contractors withhold payment.
Minister for Jobs and Industrial Relations, the Hon Kelly O’Dwyer MP, said Labor would rather scrap the ABCC and reduce oversight over security of payments.
“Labor has no credibility when it comes to protecting subbies. Their latest proposal is more than a little hollow when you consider that their other bright idea is to scrap the ABCC, the very regulator in charge of ensuring compliance with workplace laws, including Security of Payment Laws, for Commonwealth funded building work,” Minister O’Dwyer said.
“Not only that, but Bill Shorten and Labor continue to support and empower the militant CFMMEU, who are a subbies’ worst nightmare. Just last year they were fined $300,000 for threatening to ‘smash’ subcontractors on a Sydney worksites.
“When it comes to the CFMMEU or small businesses and subbies, Labor will back their militant union mates every time.”
Assistant Treasurer Stuart Robert said the Coalition Government has taken a number of steps to clamp down on phoenixing, including establishing the Phoenix Taskforce.
“Just this month the Government introduced more reforms to give regulators additional enforcement and regulatory tools to better detect and disrupt illegal phoenix activity,” Minister Robert said.
“The package of tax and corporate reform measures will also prosecute or penalise those who engage in or facilitate this illegal activity.”
“The new phoenixing offences and civil penalty provisions will specifically target the core behaviour of asset stripping – a key strategy used by phoenix operators.”