fbpx

Another year, another budget…  But what does it actually mean for you as a tradie or trade business owner?

Every year since 2015 we’ve been putting together a summary of the changes that we believe are most relevant.

This year there are quite a few changes that will impact on tradies and trade business owners, and we’ve summarised them below…

Instant Asset Tax Write-Off

Kicking off with some good news, the Government is increasing the amount a business can instantly write-off from $25,000 to $30,000 for a single asset.

This scheme was originally introduced in 2016 and has proven to be very popular with tradies and small business owners in general.

This scheme doesn’t actually mean you get any more money back in your pocket, but it does mean you get it years earlier as the asset can be depreciated to zero immediately rather than over a number of years.

Result: WIN

Tax Cuts

Being an election year, it’s no surprise the Government is throwing around a bunch of tax cuts to keep voters happy.

Last year the Government introduced a tax offset which meant taxpayers earning up to $90,000 could receive up to $530 extra back at tax time.

This year it has been more than doubled to $1,080 and will apply to the 2018/19 financial year.

Our ‘How much do tradies earn’ report last year revealed that the average taxable income for a self-employed tradie was $81,636.  With that being the case, most tradies can expect to get some level of tax offset when they lodge their next tax returns.

Looking further ahead, tax brackets up to $200,000 a year may eventually be reduced from 32.5% to 30%.  Whilst a $200k+ taxable income isn’t the norm for tradies, it’s not completely unheard of.

More money in your own pocket rather than the Government coffers is always a good thing.

Result: WIN

Apprenticeship Funding

The Government has announced a $525 million skills package to help create 80,000 apprenticeships.

Each apprentice will receive a payment of $2,000 when they hit key milestones, whilst employers can receive an incentive payment of $8,000.

It’s unclear exactly which apprenticeships will benefit, however the ABC reports that trades include (but are not limited to) bricklayers, carpenters and plumbers.

Better funding for apprenticeships can only be a good thing in this industry.

Result: WIN

More Construction Work

A $100 billion infrastructure spend has been announced nationally, which mainly benefits Victoria and Queensland.

Being infrastructure means there will be plenty of labour required to keep things moving.  With residential construction coming off the boil, this extra work will come at a great time.

Result: WIN

Tradie Dads and Mums

Many young tradies have children in child care, and if you have them in care every day of the week you know you’ll probably hit the number of hours threshold.

The Government is helping by allowing an extra 15 hours per week of subsidised care.  The catch is that the increase only applies to three year old children.

Result: WIN – If your child is 3yo

Final Thoughts

There aren’t too many losers in this year’s budget, which is really not surprising given how close we are to a federal election.

At Trade Risk we specialise in business insurance, not accounting. We might have a good handle on the accounting side, but it’s definitely not our thing!

We strongly recommend you speak with your own accountant about your personal circumstances. If you don’t have one, then you should follow the link to check out our tradie accountant guide.


Author: Shane Moore.  Last updated: 02/04/2019.


What does the 2019 budget mean for tradies

Sources:

Tradies Love Trade Risk

In 2020 Trade Risk was awarded the Platinum Trusted Service Award for the amazing service we offer to thousands of tradies from around Australia.

  • testimonial background
    "good follow up service"
    Classic Contracting Pty Ltd | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Took weeks to get back to me. My insurance lapsed and as a result I was unlicensed for 4 days."
    Mikael Erik Amberntsson | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Jennifer from Trade Risk is always happy to help and very prompt in replying to queries and concerns. Trade Risk takes the hassle out of insurance and makes sure the cover I need is the cover I get."
    Luke | Trade Insurance - Renewal | Snowy Monaro NSW
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Excellent service. Keshia was very helpful and easy to deal with. I would continue dealing with Trade Risk again"
    Jawo Wollaston | Trade Insurance - Renewal | Pioneer
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Happy with the competitive price. Was an increase from last year but that's common."
    Samford Valley Plumbing Service Pty Ltd | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "No comment"
    Reynolds Family Trust | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Would recommend them. Great service and prompt follow up to enquiries."
    Riddells Creek Roofing Pty Ltd | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "When insurance comes up in conversation I always tell about who I am with and why."
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Timely and easy to organise."
    Anthony Walford Thyer | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "It took nearly a month to have our renewal finalised. Our broker never responded to our emails or our phone calls, and there was no communication in regard to a required amendment to our renewal proposal. This resulted in a premium much higher than what we were originally paying. Considering the lack of communication and that it took a week for anyone to even action our request, and that our renewal was not finalised 2 days out from its due date, I sincerely doubt that our broker bothered or attempted to negotiate with the insurer or find us the best deal."
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great service friendly easy renewal of my policy"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "This was a renewal for us and they helped us not only with reminders, but they send a questionnaire about our current policy needs and came up with a policy that suited our changing business."
    Airlie Aluminium Marine Pty Ltd | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Quick and efficient Attended my query and needs immediately"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great customer service agent"
    C.M Friend & P.J Friend | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "We have been using Trade Risk for years. They make it easy and it is good value."
    P & J Building & Home Maintenance Services Pty Ltd | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very easy to deal with 👍🏿"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "They provided prompt information and quotes and I found them very easy to deal with."
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Service was good, but not the premium"
    David Mathew Zemunik | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
Loading...