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


Tradies Love Trade Risk

In 2017 Trade Risk was awarded a Gold Trusted Service Award for the amazing service we offer to thousands of tradies from around Australia.

  • ".........."
    | Tradesman Insurance |
  • "Reminder of policy expiring, prompt service and good price"
    | Tradesman Insurance |
  • "I think that trade risk's customer service was excellent. They are really friendly and polite. Followed up really well."
    Daniel Phillips | Tradesman Insurance |
  • "Fast and easy"
    Gantulga Davaasuren | Tradesman Insurance |
  • "I've dealt with this company for a few years now - from the very start they've always efficient and fast... they sort out the paper work that other companies leave the customer to wade through. In a nutshell they save me buckets of time... and time is money. They also save me the aggravation of the paperwork and the back-and-forth that is so common with many insurance companies.."
    Saxon James Pty Ltd | Tradesman Insurance |
  • "They are grate to talk with and shop around for whats best for me"
    | Tradesman Insurance |
  • "Easy to deal with and communication is always on point"
    | Tradesman Insurance |
  • "easy and a good quality service"
    Michael Dearling | Tradesman Insurance |
  • "Great customer service and prompt"
    William Backhouse | Tradesman Insurance |
  • "Can't fault trade risk looked after me well when account due had no money but got it paid late thanks"
    | Tradesman Insurance |
  • "real;y good"
    Tercom Pty Ltd | Tradesman Insurance |
  • "The price was on point and the service was also great."
    | Tradesman Insurance |
  • "Excellent customer service and easy payment options"
    | Tradesman Insurance |
  • "The team always helpful."
    | Tradesman Insurance |
  • "They were pleasant to deal with when I first took the policy out and I am happy with their service."
    Gary Rodney Latcham | Tradesman Insurance |
  • "Easy to use, heaps of advance notice for when insurance is expiring. Great communication."
    Ricky Gan | Tradesman Insurance |
  • "Price is great Some emails and returning my calls were non existent even after asking a second time I rang for different premiums with increased excesses, spoke to someone, received no reply, rang again and left message but was not rung back"
    Richard WIlliam Morris | Tradesman Insurance |
  • "Pretty good .. jus t let us know the insurance is goin up if ur automatic do it"
    Ben Andrew Kerkham | Tradesman Insurance |
Share via