Master Builders Western Australia — May-June 2017

Company tax cut a win for builders

The Senate’s passing of the Government’s company tax cut for
businesses turning over less than $50 million is a win for the building
and construction industry, the economy and the community according
to Master Builders Australia.

“This is a big win for 121,000 small and medium building businesses
and will support the creation of more than 8000 new jobs per year,”
Master Builders said.

“Building and construction is the nation’s second largest industry and
one of the heaviest taxed. This company tax cut will reduce the tax
burden by more than $700 million for thousands of small and medium
family building firms when fully implemented.”

Master Builders said the Government and the Senate crossbench
had delivered an important reform that would drive investment,
growth and jobs. Nevertheless, company tax for larger businesses
remained too high and Master Builders called on the Government to
remain committed to completing the job to ensure Australia remained
internationally competitive and able to secure a fair share of international
and domestic investment.

“The value of resource and civil construction (engineering construction)
has fallen to its lowest level since March 2009 confirming the need for
policy reforms to aid the economy in getting over the construction phase
of the mining boom,” Master Builders said.

“Engineering construction activity fell by 4.5 per cent in December

showing that policy reforms such as the Government’s Enterprise Tax

plan must be fully supported to ensure we can attract the non-mining

investment which is urgently required.

“Our company tax rate is uncompetitive. We cannot rely on the mining

sector to attract investment anymore.”

Master Builders is calling for Budget settings that promote broader

based investment such as productivity enhancing infrastructure to fill

Australia’s $700 billion infrastructure shortfall.

The organisation expects the deterioration in total engineering

construction work to continue in 2016-17, as the last major LNG

projects reach the production phase.

“The majority of this will come from major project completions in WA,

where $107 billion worth of LNG projects are to be completed by mid-

2018,” Master Builders said. “The recent uplift in commodity prices is

good news for WA, but is unlikely to encourage a new round of resource

related investment.

“As the nation’s second largest industry and largest consumer of capital,

the building and construction industry needs company tax settings that

are internationally competitive and support attracting new investment.”

Ric New founded

Midland Brick in 1946

The Master Builders Association invites members to nominate

young high achievers or rising stars for the 2017 Ric New Medal

for Excellence or the 2017 Ric New “Rising Star” Award.

Named after Ric New, the founder of Midland Brick and a person

whose success was achieved largely through entrepreneurial fl air

and innovativeness, this award is focused on recognising the same

personal characteristics.

Visit mbawa.com to download a nomination form.

8 REPORTS general news

MAY–JUNE 2017