Australian Opposition commits to reducing construction sector pressures

Leader of the Opposition, The Hon Peter Dutton MP, has just handed down the federal budget in reply.

Overall the budget in reply speech outlined four key policy areas which the government committed to start implementing as soon as parliament reconvenes if elected. The four reform areas include:

• Energy price reductions
• Lower immigration and more homes
• Keeping Australians safe
• Guaranteed funding for health, education and essential services

Announcements specific to RICS members

The Opposition has confirmed its intention to introduce the following policies:

• addressing the critical skills shortages in the construction sector by
  • introducing a two year wage subsidy of 10 per cent (up to $12,000) for small and medium sized employers taking on apprentices and trainees whose occupations are on the Skills Priority List
  • setting a target of 400,000 trainees and apprentices
  •  support for the $10,000 bonus for apprentices and trainees

Other relevant measures that have been announced include:

• deregistration of the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) and reinstatement of the Australian Building and Construction Commission (ABCC)
• establishment of an Australian Federal Police lead taskforce charged with addressing criminal conduct in the building sector working closely with the Australian Transaction Reports and Analysis Centre (AUSTRAC), Australian Securities and Investments Commission (ASIC), the Australian Taxation Office (ATO) and other financial service regulators
• abolition of:
  • the $10 billion Housing Australia Fund (where contracts have not already commenced)
  • the $20 billion Rewiring the Nation program (where contracts have not already commenced)
  • regulations that are increasing the cost of new homes (referred to as red and green tape)
• $14 billion for production tax credits for green hydrogen
•  review and removal of regulatory burdens where there is overlap with the states particularly for mining, agriculture and construction
•  reduce the permanent migration program by 25% to lessen demand for housing
• ban on foreign investors and temporary residents from purchasing existing Australian homes for a period of two years
•  supporting first home buyers by allowing them to access up to $50,000 from their superannuation savings to be used towards their home deposit
• halving the fuel excise for one year at a cost of $6 billion
• increasing the $30,000 instant asset write off on an ongoing basis for small businesses
• support for up to 500,000 new homes by investing $5 billion to fund essential infrastructure like water, power, sewerage and access to roads at new development sites

Other major announcements:

• reducing the number of Canberra based public servants with an estimated saving of $7 billion a year
• key changes to energy policy aimed at reducing energy prices including the:
  • introduction of a National Gas Plan that will prioritise domestic national gas supply including through an east coast gas reservation initiative
  • a commitment to nuclear power to provide baseload power
  • approval of new gas projects
• initiatives in relation to health, education and other front lines services including:
  • reducing the Pharmaceutical Benefits Scheme co-payment to $25
  • $500 million for women's health
  • $400 million for additional youth mental health services
• a range of national security, social cohesion and crime measures

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