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The federal government has announced a big spending budget for construction and tradies with an additional $15.2 billion allocated to infrastructure projects.

Describing it as a nation building budget, Master Builders Australia CEO, Denita Wawn, said it is good news for the 400,000 workers engaged in building and construction businesses.

“This will boost the confidence of builders and tradies that the economic recovery can be completed,” she said.

“The investment of an additional $15 billion for infrastructure will play a vital role not only in completing the economic recovery but underpinning a strong economy into the future.”

This will be complemented by $250 million of infrastructure for regional communities to be delivered by the Building Regions Fund.

“Ensuring that local contractors and subcontractors are able to tender for projects in their own communities will massively boost local economies and create jobs,” Wawn said.

“Builders and tradies are big backers of themselves and their business success. Extending the highly successful instant asset write off scheme will mean the cash registers continue to ring as sales of utes and other business assets will continue to bounce back to pre-pandemic levels.”

The government has extended a range of tax breaks for business including a one year extension to the "full expensing" scheme, which allows businesses with a turnover or income of less than $5 billion to immediately write-off the cost of assets they first use or install by June 30, 2023.

An instant write-off allows businesses to claim deductions upfront, rather than spread it over several years through depreciation.

The government is also providing tax incentives to encourage businesses to upgrade information technology.

“Building and construction SMEs have one of the lowest rates for uptake of technology. The Government’s investment in improving digital skills and capacity can make our industry even more productive,” Wawn said.

“The Family Home Guarantee will be life changing for single custodial parents, the vast majority of whom are women. Combined with 10,000 new places under the New Home Guarantee will mean that the people who build new homes and the people that want them continue as the lynchpin of recovery,” she said.

The Federal Budget is providing support for 5000 women to learn a trade in building and construction.

This is in addition to extending the 50 per cent wage subsidy to apprentices.

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