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Master Builders survey warns of crisis facing building industry

BUILDERS and tradies are facing an imminent crisis with most set to run out of new work in the next few months according to a survey on the impact of Covid-19 released today.

Denita Wawn, CEO of Master Builders Australia said the results were alarming. About 73 percent of respondents reported a substantial fall in forward work on their books, with 40 percent being lost on average.

“While projects that commenced prior to the onset of the Covid-19 crisis are providing short term work for many, for the overwhelming majority of our 32,000 members new orders have fallen off a cliff,” Ms Wawn said.

“The situation is dangerous. At risk is the viability of nearly 400,000 building and construction businesses, the jobs of 1.2 million Australians and the industry’s capacity to aid the economic recovery,” she said.

“The home building sector is being hit especially hard. Confusion about how domestic building activity fits in with government safety rules combined with job losses and business closures is having a devastating impact on demand for new residential building activity.

“So, while we strongly back the current measures to support businesses and jobs, we are calling on all governments to urgently rollout new stimulus measures that will immediately kick-start building activity,” Ms Wawn said.

“Increasing the size of the First Home Loan Deposit Scheme and expanding its eligibility to include anyone wanting to purchase only new homes while maintaining the current price and income caps is just one of a range of measures we have proposed to the Federal Government,” she said.

“The nation’s commercial and civil construction contractors also urgently need a forward pipeline of work. Our calls for governments at all levels to accelerate the construction of social, defence and transport infrastructure projects will continue to be relentless.

“Our message to governments, is that we understand the enormity of the challenge they face but that these stimulus measures cannot wait. If urgent action is not taken our industry’s role in the economic recovery will be severely blunted,” Ms Wawn said.

www.masterbuilders.com.au

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Arrow investment boosts resource role in Queensland’s COVID-19 recovery

CONFIRMATION the $10 billion Arrow Energys Surat Gas Project, in the State’s south-west, will proceed into the first phase of development is a major boost in Queensland’s economic recovery for COVID-19.

Queensland Resources Council chief executive Ian Macfarlane said the announcement today the project between Dalby and Wandoan would proceed was “good news when Queensland needed it most”.

“The loss of jobs across Queensland in the COVID-19 response has been devastating," he said.

“The resources sector has been at the forefront of slowing the spread of COVID-19. Our coal, metals and petroleum companies have been continuing to operate, invest, employ and export on behalf of all Queenslanders.

“The Arrow announcement is a long-term commitment and it could not have come at a better time for Queensland.”

The first phase of the project would create 200-plus construction jobs, and provide additional business opportunities for local suppliers.  The project, over all phases to 2046, would create up to 800 construction jobs and 200 permanent, operations jobs.

Mr Macfarlane said prior to COVID-19, the resources sector supported one in seven jobs in the Queensland workforce – or more than 372,000 jobs.

“The majority of companies are either maintaining their employment levels or anticipating a slight increase," Mr Macfarlane said.

"Indeed, there are currently about 800 jobs in the Queensland resources, mining and energy sector advertised online with Seek.”

www.qrc.org.au

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Tax Practitioners Board supports BAS agents to advise clients on stimulus measures

TODAY the Tax Practitioners Board (TPB) has registered a legislative instrument, along with an explanatory statement, on the Federal Register of Legislation, that extends the services and advice BAS agents can legally provide on the Australian Government’s COVID-19 stimulus package.

BAS agents can now legally support Australian businesses by advising about their entitlements under the new JobKeeper Payment and Cashflow support for business initiatives.

TPB chair, Ian Klug said the legislative instrument makes it clear that BAS agents can lawfully advise on the JobKeeper Payments and on the Cashflow support for business.

"This reflects a sensible and appropriate outcome to support the Government’s initiatives," Mr Klug said.

"The TPB is working to support the extraordinary efforts of all registered tax practitioners acting professionally and ethically to assist Australian workers and businesses, especially in understanding these stimulus entitlements."

Mr Klug said the issuing of the legislative instrument provides a timely reminder to all Australians who use a tax practitioner, to ensure that they are registered with the TPB.

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South Australian Government announces $300 million CBD office building to be delivered by Cbus Property

CBUS SUPER has congratulated the South Australian Government and Cbus Property on their partnership for a new $300 million office building development, in the heart of the Adelaide CBD.

The South Australian Department of Planning, Transport and Infrastructure will act as an anchor tenant for the 83 Pirie Street building.

Cbus Super CEO David Atkin said the development would support up to 2,000 construction jobs during the Covid-19 recovery.

“This landmark project comes at such an important time for the construction industry in South Australia,” Mr Atkin said.

“Building and construction will be the frontline of Australia’s economic recovery.

“Cbus has supported over 95,000 construction jobs through Cbus Property while delivering strong returns for our members.

“Cbus Super is in a strong liquidity position and we are determined to play our part in ensuring a strong pipeline of construction work to help secure the economic recovery.”

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The nation's home builders are open for business

BUILDERS and tradies remain open for business and are complying with the social distancing and hygiene rules, in line with the latest advice from government according to Master Builders Australia CEO Denita Wawn.

“The Prime Minister has confirmed that building is an essential industry and is being kept open but there is some confusion in the community about how this is applied to the home and we want to clear that up,” Ms Wawn said.

“Safe Work Australia advice confirms that a workplace includes a private home or dwelling, which means building workers and tradies will do everything to follow social distancing and strict hygiene practices, so any risks are eliminated or minimised.

“This means that the public can have confidence that they are doing the right thing in helping stop the spread of COVID-19, while still going ahead with their residential building projects.

“For home and property owners it is important to know that you don’t need to pull the plug on current work,” Ms Wawn said.

"Whether you’ve been planning a new build, a renovation job or you’ve been planning to talk to your builder about getting the ball rolling for this kind of project, you can still have your builder on your premises for purposes of work and be confident that they are complying with their obligations and that you are doing the right thing by the community,” Ms Wawn said.

“Whether its indoors or outdoors there is absolutely no problem with your project going ahead. There is no need to put kitchen or bathroom renovations, plumbing or electrical work or landscaping on hold.

“It’s also important for home and property owners and the community to know that Safe Work Australia has produced information for in-home workers and tradies, containing a range of practical information about client interactions, householder checks and other ways to reduce or eliminate risk,” Ms Wawn said.

“Our message to clients is that it’s your home and our members workplace so they will do everything necessary to comply with all safety laws.  It is still also more than okay to go and inspect a display home providing that you make an appointment. Our members are telling us that appointments are being made and now is a great time to do this,” Ms Wawn said.

“Builders and tradies care deeply about the safety and wellbeing of their communities and they are complying with the latest government advice so they can provide building services to their communities.

“There are nearly 370,000 residential building businesses in Australia, including thousands of mum and dad businesses. The survival of these businesses is essential to the livelihoods of builders and their families but also the state economy which is also under huge pressure from the COVID-19 crisis,” Ms Wawn said.

“We are encouraging the public to make the time now to book an appointment with their builder to plan their new project, to inspect a Display Home and continue on with their building project or renovation."

www.masterbuilders.com.au

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