Today’s Reserve Bank decision to raise interest rates to 4.85 per cent means interest rates are at their highest since November 2008, an 18 year high.
The rate rise is set against a difficult backdrop for builders and tradies.
The industry stands ready to build, however each of these challenges combined with historically high interest rates erode the financial case for projects to proceed.
This backdrop is not one to be proud of. The Federal Government urgently needs to step up and reset its economic plan. The plan should support, not hinder, the building industry’s ability to build more homes and deliver the infrastructure and buildings the nation critically needs.
The reality is that whatever the plan is now simply isn’t working. Construction forecasts have been downgraded, and Australia’s housing supply is no closer to where it needs to be.
Meanwhile, the Government is charging ahead on its plan to hit over 90,000 construction businesses with higher taxes and costs with their trust crusade – after hitting the sector with higher taxes via negative gearing and CGT, as well as the ban on SMSF investment in housing.
Master Builders Australia will appear before the Senate Committee examining the trust legislation on Thursday to oppose these proposed changes. The last thing the building and construction industry needs right now is another hit to confidence, investment and cash flow.
Media contact: Dylan Hafey, Adviser, Media & Government Relations
0497 330 064 | [email protected]
