Make the instant asset write-off permanent, says HIA

HIA Industry & Policy chief executive, Simon Croft, described the upcoming federal budget as “the right opportunity to lock (it) in”.

“Businesses need confidence that tax settings won’t change year-to-year if they are going to invest in equipment, new technology and their workforce,” he said.

“Repeated temporary extensions of the measure have limited its effectiveness and created unnecessary uncertainty for businesses making long-term investment decisions.”

"Helping businesses to invest will additionally help to achieve productivity goals as outlined in the recent Productivity Commission report, Housing construction productivity, Can we fix it?”

Croft outlined that investment goes beyond material needs to training and safety systems, and ensuring the instant asset write-off as a permanent measure would support business capability.

The HIA also said this would help manage cost pressures, allowing them to continue taking on apprentices and upskilling existing workers as labour shortages continue to affect businesses.

“If the government is serious about improving productivity and increasing housing supply, it must support the businesses delivering that work,” Croft added.

“A permanent Instant Asset Write-Off as part of this year’s federal budget would be a practical, business-focussed reform that delivers immediate benefits, supporting investment and strengthening the industry’s capacity to deliver new homes."