Business News Releases

Engineering construction slumps as industry waits on infrastructure

“THE NEED to fast-track the rollout of infrastructure projects has grown more urgent following the June quarter slump in engineering construction activity to be at its lowest level in a decade,” according to Shane Garrett, Master Builders Australia's chief economist. 

"Although the volume of engineering construction activity across the country only fell by 1.1 percent in the June quarter, it means the sector has now fallen to its lowest ebb since 2008,” he said. 

“Even though we supposed to be on the cusp of an infrastructure boom, engineering construction activity has not been this weak since the GFC. It’s a clear sign that governments are not moving fast enough to advance infrastructure commitments to the construction phase,” Mr Garrett said. 

“This will require all levels of government to urgently implement reforms to draw on the capacity of smaller and local construction contractors and also measures to ensure there is the necessary skilled workforce. 

“Today’s figures show that the other components of construction are also struggling. The downturn in residential building activity continued with another 5.1 percent reduction during the June 2019 quarter. This was eclipsed by the 6.6 percent drop in commercial building work done over the same period,” Mr Garrett said. 

“As the economy’s largest provider of full-time jobs, the new figures show that the building and construction industry is in real need of a lift. The quickest way to achieve this is by governments working together to get the infrastructure projects happening. 

“Our recently-released Master Builders forecasts indicate that engineering construction work is likely to be a crucial lifeline for our industry over the next few years, given that both residential and commercial building are expected to struggle,” Mr Garrett said. 

“A visible expansion in the amount of construction projects taking place would lift morale in the industry and show everyone that our economy is on the up again

During the June 2019 quarter, Western Australia was the only state to see an increase in construction activity (+1.4%). The largest reduction in construction work affected the ACT (-13.1%), followed by the Northern Territory (-12.3%) and Queensland (-6.0%). There were also declines in South Australia (-4.8%), Victoria (-4.4%), Tasmania (-4.1%) and New South Wales (-1.9%). 

www.masterbuilders.com.au

ends

QRC supports resources and industry growth in Queensland’s North West

THE Queensland Resources Council (QRC) has welcomed the release of the State Government’s North West Queensland Economic Diversification Strategy, and said it was important to strengthen the resources sector and ensure it continues to develop alongside other key industries.

QRC chief executive Ian Macfarlane said the resources sector would continue to be the main economic driver of the region, but all sectors would benefit through a plan to grow the region and encourage more investment.

“North West Queensland is a resources heartland,” Mr Macfarlane said.

“The resources sector supports almost 10,000 jobs and makes up $1.7 billion, or more than a third, of the region’s economy.

“It is already delivering for our state and it is also one of the most prospective regions of Queensland for new exploration, new investment and new jobs.

“The North West Minerals Province is rich in potential for critical minerals that are the building blocks of just about every part of our lives, including rare earths.

“The Geological Survey of Queensland has an estimated $40 billion dollars of geological information and explorers are combing through these rock libraries for clues to where the next deposit of new energy minerals might be found.

“Queensland has a world class reputation in metallurgy and minerals processing, which stands us in good stead for refining and recovering these new energy minerals.

“They will also be in growing demand on global markets, so it is important that Queensland seizes the opportunities for ongoing resources investment in the North West.

“It is important that investments in energy infrastructure, including supply and transmission, provide opportunities for common user projects, which was identified as a priority in the Strategic Blueprint for Queensland’s North West Minerals Province.

“Expanding energy opportunities in the North West will not only power the resources sector for example in mineral processing, but it will provide the reliable electricity needed to support other industries in the region including agriculture, and support the development of towns and communities.

“QRC has also welcomed the Palaszczuk Government’s commitment earlier this year to upgrading the Townsville to Mount Isa rail line and reducing rail charges.

“The opportunities for resources development in the North West could help secure Queensland’s role as a resources superpower for decades into the future.

“We are calling on both the State and Federal Governments to continue to provide incentives for exploration and development, such as the $100 million Exploring for the Future program from the Australian Government.

“Investment in common use infrastructure, exploration and supporting industries can all help deliver on the full potential in the North West.”

ATO reveals almost 90pc of income tax paid by small business is paid voluntarily

NEW FIGURES released by the Australian Taxation Office (ATO) today estimate that almost 90 percent of income tax from small businesses is paid voluntarily or with little intervention from the ATO.

“This shows that the vast majority of small businesses in the tax system are trying to do the right thing,” Deputy Commissioner Deborah Jenkins said.

“Small businesses make up more than 99 percent of all Australian businesses. They contribute $380 billion to the economy each year and employ around five million people," Ms Jenkins said.

“Considering how much small businesses have on their plate, we’re grateful for the level of work they put in to get their tax right.”

The ATO estimates the 2015-16 income tax gap for the small business sector to be approximately 12.5 percent, or $11.1 billion, with over $7 billion (or over 64% of the total value of the gap) being attributed to black economy behaviour.

Small business tax gaps that have been released overseas range from 9-30 percent.

Around 90 percent of small businesses use a registered tax professional to help them comply with their income tax obligations. 

“We recognise the important role that tax professionals have in helping small businesses get their tax right and we would not have been able to achieve this result without the support of our tax professionals," Ms Jenkins said.

“In addition to seeking qualified advice from a registered tax professional, we know that small businesses who keep good records and have invested in record keeping software are more likely to get their tax right.

“We’ve found that some small businesses are making mistakes with their tax, but these are often unintentional errors which are easily fixed.  Our objective is to support these honest small businesses to better understand their obligations and to help them get it right the first time.”

The ATO has a research program that measures tax performance across all market segments. This work helps measure the effectiveness of the tax system.

As part of this program, the ATO measures tax gaps – estimates of the difference between the tax collected and the amount that would have been collected if everyone was fully compliant with the law.

“Internationally, tax gaps are difficult to compare, but what’s clear is we are performing well in terms of small business compliance, and that is something worth celebrating.”

The ATO’s research shows a small percentage of businesses are deliberately avoiding their tax obligations, but by dollar value this adds up to a significant portion of the gap. This behaviour could be motivated by a desire to avoid tax, limit impacts on welfare payments, or to avoid law enforcement. 

“Hiding income, exaggerating expenses and operating outside the system are all considered to be black economy behaviours. Businesses doing the wrong thing are about to attract our full attention,” Ms Jenkins said. 

The Black Economy Taskforce estimates that the black economy costs community as much as $50 billion, approximately 3 percent of Gross Domestic Product (GDP). 

“Small business operators that engage in black economy behaviour are not competing on a level playing field. They have an unfair advantage over those doing the right thing,” Ms Jenkins said.

“We’re implementing a number of initiatives to tackle the black economy. Changes like a ban on sales suppression software and a new tip off line where people can report suspected black economy behaviour to us.”

The ATO is also expanding their sophisticated data analytical tool that spots red flags indicating omitted income or other black economy conduct.

“We’ve stepped up our enforcement activities, including highly visible mobile strike teams. We visited close to 10,000 businesses around the country last year and we plan to visit another 30,000 over the next three years.”

The ATO provides free, educational resources, guidance materials and online tools and services on its website. The ATO also works with tax professionals and provides them with tools to educate and inform their small business clients to ensure they can meet their tax obligations.


EXTRA INFORMATION

Tax gap estimates are an important feature of the performance and accountability story of any modern tax authority. (Find out more at ato.gov.au/taxgap.)

The ATO has previously released the net income tax gap for large corporates, estimated at 4.4 percent or $1.8 billion in 2015-16, and the net income tax gap for individuals not-in-business for 2014-15, is estimated at 6.4 percent, or $8.7 billion.

To measure the 2015-16 income tax gap for small business, we use findings from our random enquiry program to estimate the difference between what we expected to collect, and what was actually collected for the given year.

Initially, the ATO undertakes a detailed profile of the tax affairs for each taxpayer in the sample, which helps to identify all tax risks or issues for each taxpayer.

The ATO makes use of all information provided by the taxpayer as well as data collected by the ATO, for example, interest and dividend payments, and public domain data.

Where we find issues, we, escalate to an audit. The audit results contribute to the calculation of the tax gap.

This method is considered highly credible, and is commonly used in other tax jurisdictions for tax gap estimation in similar situations. 

The small business income tax gap estimate provides a better understanding of compliance in this segment. This information helps the ATO better tailor our products, support and strategies to mitigate these risks, and improve the experience for taxpayers.

More information about the small business tax gap including how we calculated it is available through the ATO website at ato.gov.au/SmallBizTaxGap.

Tax gap estimates are an important feature of the performance and accountability story of any modern tax authority. Find out more at ato.gov.au/TaxGap. 


About the Black Economy Taskforce

The Black Economy Taskforce was established to provide a whole-of-government approach to combat the black economy in Australia. It was established in December 2016 to develop a policy framework involving new proposals to tackle black economy activity. The Black Economy Taskforce's Final Report was released in October 2017.

The ATO plays a significant role in leading and delivering on the Black Economy Taskforce recommendations accepted by the Government. Since 1 July 2018, the ATO has coordinated an extensive program of work to tackle the black economy. This program of work includes a multi-faceted approach.

The ATO is responsible for addressing the following aspects of the black economy:

  • deliberate under-reporting income and over-claiming expenses
  • ensuring businesses meet their employer obligations – so they don’t pay employees or contractors cash in hand, underpay wages, fail to withhold tax or not contribute to super
  • addressing illegal phoenixing (together with Phoenix Taskforce partner agencies) – deliberately liquidating and reforming businesses to avoid obligations
  • preventing tax fraud
  • dealing with illicit tobacco, duty and excise evasion
  • targeting intermediaries and agents who enable black economy behaviour

www.ato.gov.au

ends

Small business tax avoiders costing Australians billions

THE ATO Small Business Tax Gap report released today highlights a $11.1 billion tax gap, almost two-thirds (64%) of this credited to black economy behaviour such as not declaring income, workers paid cash ‘under the table’ or exaggerating expenses.

Some 71 percent of small businesses reported their tax correctly and a further 18 percent attempted to report correctly but made mistakes, mainly due to poor record keeping or human error. 

For the more than four million small businesses in Australia, it is essential to have proper records in place for tax time, so they can substantiate and justify all claims.

Australian tax leader at Chartered Accountants Australia and New Zealand Michael Croker said the report is a warning to the millions of small businesses now completing their 2019 income tax returns to ensure documentation is complete and accurate.

“We are pleased to see that the ATO has found Australian small businesses use tax professionals more than those in countries that have reported a larger tax gap,” said Mr Croker.

“It is important to ensure that all income is recorded and that private components of an expense are not inadvertently claimed as a business expense. It is also essential for businesses to disclose all financial transactions to your Chartered Accountant to ensure you are compliant. 

“Businesses that do not accurately share their claims need to consider that the ATO has considerable powers to investigate, claim money back and penalise.”

The impact of the few businesses that are participating in the black economy is enormous. 

“This is not 'their' money, it’s Australia’s money, and each incorrect claim adds up to billions being diverted from Australian services and infrastructure,” said Mr Croker.

“The black economy places undue and unfair competitive pressure on the majority of small business operators who are doing the right thing.

“The Black Economy Taskforce made a number of recommendations to reduce the impact of the black economy and this report certainly gives the argument credence. 

“The anonymity of cash ensures those participating in black economy remain under the radar.

“An extremely conservative RBA estimate shows that $1 billion is warehoused by the black economy with a further $5 billion used for operational purposes which represents up to 8 percent of bank notes in circulation," he said.

“Implementing a ban on cash transactions of $10,000 or more will make it more difficult to operate in the black economy with very limited impact on those who prefer cash and operate within the regulatory systems.”

 

About Chartered Accountants Australia and New Zealand

Chartered Accountants Australia and New Zealand is a professional body comprised of over 120,000 diverse, talented and financially astute members who utilise their skills every day to make a difference for businesses the world over. Members are known for their professional integrity, principled judgment, financial discipline and a forward-looking approach to business which contributes to the prosperity of our nations. 

www.charteredaccountantsanz.com

ends

New Century Zinc agreement highlights royalty role in resources investment, employment

THE Palaszczuk Government’s first Royalty Deferral and Repayment Agreement to support the development of New Century Zinc Mine should be a model for other projects to attract more investment and create more jobs, Queensland Resources Council (QRC) chief executive Ian Macfarlane said.

Mr Macfarlane said the agreement was under the State Government’s 2017 Resources Regional Development Framework for new developments in the North-West Minerals Province and Galilee and Surat basins and QRC welcomed the government’s acknowledgement it would “provide a precedent for similar arrangements in the future”.

“The resources sector is projected to pay more than $5.4 billion – or more than $100 million every week - in royalty taxes to the Queensland Government this financial year,” he said.

“Royalties paid to the Queensland Government have more than doubled over the last five years, up from $2 billion in 2014-15.

“The agreement means royalties will be paid in full and with interest, but it also recognises the role of flexibility in application of a stable royalty policy can support the development of new projects, generating new investment, new exports and new jobs for Queensland.”

Mr Macfarlane said projects can also support the development of common-user infrastructure, such as with the New Century Zinc project the continued dredging of the Port of Karumba, making the Port available for other commercial users including the cattle industry.

Deputy Premier, Treasurer and Minister for Aboriginal and Torres Strait Island Partnerships Jackie Trad said New Century was a great example of what the RRDF can achieve.

www.qrc.org.au

ends

Queensland resources ready to deliver through more trade with India

THE Queensland Resources Council (QRC) has welcomed the release of the Australian Government’s Coal in India 2019 report, reinforcing the enormous potential for new jobs and economic benefits through expanding our resources trade with India.

QRC chief executive Ian Macfarlane said Queensland was in the ideal position to make of the most of the opportunities through more trade with India.

“Queensland should keep playing to our strengths.  And that means seizing the opportunities to meet an expanding market for coal and other Queensland commodities,” Mr Macfarlane said.

“The Australian Government Coal in India 2019 report underlines the potential jobs, export and royalty tax benefits from expanding Australia’s thermal coal exports to India, with more than 4000 new direct jobs forecast for regional areas.

“It makes sense to export Australia’s high quality coal for use in global markets, because our coal has a higher energy content and produces lower emissions than coal from other exporting nations," he said.

“By creating stronger trading partnerships with India, Queensland can help deliver a range of commodities that India needs to grow and deliver a higher standard of living for its people, and at the same time benefit every Queenslander.

“There are opportunities for the expansion of both thermal and metallurgical coal exports to India," Mr Macfarlane said.

“India is already Queensland’s third largest customer for coal, behind China and Japan.  In 2018 the total value of Queensland coal purchased by India was $9.5 billion.

“India is now the world’s second largest steel producer, and Queensland’s world-leading metallurgical coal is helping power that growth. In 2018, India was the largest buyer of Queensland metallurgical coal.

“There are also rich new opportunities for the export of Queensland zinc, gold and LNG as a result of India’s continuing economic growth and urban development. For example, India’s demand for zinc is forecast to grow by 7.6 per cent each year to 850 million tonnes in 2021," Mr Macfarlane said.

“New resource projects and new markets for Queensland commodities means more jobs, more investment and more money paid back to Queenslanders through royalty taxes.

“QRC looks forward to further strengthening the trading partnership between Australia and India, and in particular between Queensland and India.”

www.qrc.org.au

ends

Make your tax agent appointment now, says CPA Australia

NOW is a great time to make your tax-time appointment with your tax agent, according to CPA Australia’s head of external affairs, Paul Drum.

“This year’s tax time has been a little different from previous years, with the rollout of Single Touch Payroll for employers, and the introduction of income statements for employees – instead of the more familiar payment summaries or group certificates,” he said.

“The ATO has reported that 98 percent of all payroll records are now finalised, and that dividend and interest data should be ready by the end of this month. All private health insurance data has also now been matched, which is welcome news in the first year that statements are not required to be sent to policy holders.

“With income statements now ‘tax ready’ and tax time pre-fill information nearly fully available, CPA Australia encourages you to make your tax agent appointment now.

“More than 70 percent of Australian individuals lodge via a tax agent each year, and a good tax agent will help ensure that you claim everything to which you are legally entitled, while keeping you on the right side of the ATO.

“With an increased ATO focus on work-related expense claims, it has never been more important to get it right,” Mr Drum said.

“The ATO has advised it is checking many more tax returns this year, and their most recent list of dodgy deductions includes Lego, weddings, family trips and school fees. The ATO has also warned that it may seek information from your employer to check if you’ve been reimbursed for your claims, and taxpayers have been denied tax deductions for items that are not allowable.

“Life is busy enough without thinking about tax all the time, and for many of us convenience is key - and a tax agent can provide this,” he said. “An added benefit of using a tax agent is that they will have all your pre-fill data on their systems - meaning that unlike self-preparers, you don’t need to worry about going through your myGov account.

“If you use the ATO’s myDeductions app, you can even upload all your information into the ATO’s system for your tax agent to include in your tax return.

“Tax agents help you navigate our complex tax system and guide you on keeping the right records. They can help you calculate capital gains tax on your cryptocurrency holdings, or determine whether that income from your side gigs is assessable. Hint: earning $15,000 in sponsorship and benefits from your Instagram account is most likely to come with some income tax consequences,” Mr Drum said.

Mr Drum also warned that those who have lodged early to claim the low and middle income tax offset may find that the ATO gets in touch with them if their tax return doesn’t match the information they hold. Alternatively, a visit to a tax agent may uncover some additional deductions that should have been included.

“So get in touch with your tax agent now to arrange a time to talk tax, and check out CPA Australia’s tax tips to help you through Tax Time 2019. If you haven’t got a tax agent, find a CPA now.”

Australia's two treaties in three cities Parliamentary committee spotlight

THE Joint Standing Committee on Treaties will be holding hearings on the Hong Kong and Indonesia free trade agreements in Sydney, Melbourne and Perth in the coming weeks.

Committee Chair Dave Sharma MP said the hearings would be the first opportunity for public consultation on the agreements since they were signed some months ago.

“In an international environment in which protectionism is gaining a foothold, it is now more important than ever for the Parliament to engage with Australians on free trade,” Mr Sharma said.

“These public hearings will be important in informing the Committee’s views on whether the agreements are in Australia’s national interest.”

The hearings will enable community groups; peak bodies representing business, exporters, education institutions and employees; along with academic experts, to talk to the Committee about the two agreements.

Programs for all three hearings, including lists, are available on the Committee's website. 

Public hearing details

SYDNEY

Any members of the public wishing to attend this public hearing can register interest via e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it. by 2pm Friday, 23 Aug 2019.

Date: Monday 26 August 2019
Time: 9am to 4pm
Location: Meeting Room 1, Level 21, Commonwealth Parliamentary Office, 1 Bligh Street

Click here to view the full program. 

MELBOURNE

Date: Tuesday 27 August 2019
Time:       9am to 4pm
Location: Committee Room G6, Ground Floor, 55 St Andrews Place

Click here to view the full program.

PERTH

Date: Monday 2 September 2019
Time: 9am to 4pm
Location: Anglesea Room, Mercure, 10 Irwin Street

Click here to view the full program.

The hearings will be broadcast live at aph.gov.au/live.

ends

Miners to share safety knowledge as conference wraps up

QUEENSLAND'S mine workers along with union and government representatives have vowed to share with all their colleagues the new and proven health and safety techniques learnt from this year’s Queensland Mining Industry Health and Safety Conference on the Gold Coast, which finishes today, August 21).

Conference chair and CFMEU safety representative Greg Dalliston said the most important part of all the work that goes into the four-day conference is that all parties implement the necessary changes to improve health and safety.

“Just like carrying the conference bag back with them to work we want all of the delegates to carry with them the critical information about new ways to foster proactive health and safety policies to their respective mine sites. We need everyone to encourage workers to stand up and raise safety issues without fear or retribution,” Mr Dalliston said.

“Tragically we have lost four mine workers and two quarry workers in the past 12 months and it is paramount we work together by exchanging information to make mine sites fatality free.”

The conference, now in its 31st year, heard a panel discussion with Mines Minister Dr Anthony Lynham, Queensland Resources Council’s chief executive Ian Macfarlane, CFMEU’s district president Stephen Smyth, Commissioner for Mine Safety and Health Kate du Preez and vice-president of the Australian Workers’ Union Mark Raguse on how industry is resolving issues and implementing new policies to safeguard workers.

Mr Macfarlane said industry had already completed half of the safety resets after Minister Lynham called for action across the state.

“Minister Lynham said industry needed to organise two-way conversations with every mine worker on every site with management to complete the state-wide safety reset. Today, we’ve seen Minister Lynham tell Parliament that more than 23,000 workers have done just that,” Mr Macfarlane said.

“That’s more than half and we’re working with the other companies to have the safety reset completed by the end of August.”

A new record of 975 delegates, including from the world’s largest mining companies attended the conference this year with a theme of ‘Working to the Future’. Delegates heard from Brant North who survived a mine accident and has represented Australia at the Paralympics, advocate for countering violent extremism Gill Hicks and big wave surfer and Red Bull Athlete Mark Matthews.

Conference sessions included incident reporting and analysis; dust impacts and controls; cultural improvement and fitness for work.

Sponsors of the conference, held at The Star, included principal sponsor Anglo American, Glencore, Yancoal, Uvex, Peabody and the CFMEU.

www.qrc.org.au

ends

National Skills Week kicks off with a focus on 'real skills for real careers'

THE Global Apprenticeship Network Australia (GAN Australia) today announced National Skills Week will kick off 26 August.

During the week, GAN Australia will showcase apprenticeships and the way they can not only help students find their ideal career, but also they can help to address Australia’s skills shortage.  The purpose of the week each year is to celebrate and inform students and the wider public of the diversity and career pathways available through Vocational Education and Training Sector (VET), with announcements of emerging trends and new growth drivers connecting skills training with job outcomes.  

The theme for National Skills Week 2019 is Real Skills for Real Careers.

Gary Workman, GAN Australia’s executive director, said, “This is a great time to celebrate our successes, but it’s also the perfect time to highlight how apprenticeships can help students identify areas where there are jobs.  

"More than 65 percent of our youth go straight into university from secondary school without understanding the employment and career pathway options that are available.  We know that the majority of college graduates will not find jobs in their area of study.  We also know that Australia is suffering with serious skills shortages.

“We are in the process of establishing a national steering committee that will meet on 19 September and we invite any interested businesses to join us.  The steering committee will tackle current issues and promote best practices for two key areas.  The first is to help businesses attract and retain staff in a tough, ever-challenging business environment.  And at the same time, address youth unemployment.  

"The national youth unemployment average is 11 percent, but it can be as high as 28 percent in pockets around Australia.  Apprenticeships can help to solve both of these issues."

GAN brings businesses together to identify skill shortages where the apprenticeship model can help young people fulfill these shortfalls.  The move supports Australian companies in offering apprenticeship and traineeship opportunities, which have been on the decline.  Commencement numbers have been falling for the past four years and completion rates remain stubbornly low at the same time as Australia’s need for targeted, skilled workers continues to grow.

Apprenticeship programmes are vital to fulfilling employers’ needs and lowering youth unemployment in the future, according to GAN:

  • They ensure that trainings matches the needswithin a company or industry.
  • The programmes keep employers and employees up-to-date with changesin technology, work practices, and market dynamics.
  • They link classrooms and workplace training so that young people acquire relevant skills.
  • They equip young people with critically important core skills, such as problem solving, teamwork, and communication.
  • They offer young people an income and real work experience. 
  • They help young people clear the hurdle of having no job experience, a barrier that prevents many other graduates from securing their first job.

 

About Apprenticeship Employee Network (AEN)

The Apprenticeship Employment Network (AEN) is the peak industry body representing not for profit group training companies across Victoria and is part of a national network of group training associations.  This national network employs over 25,000 apprentices and trainees, Australia’s largest employer of apprentices and trainees.

Within Victoria AEN through its members, employs over 6500 apprentices and trainees across all industry sectors, which is supported by a network of 10000+ host employers – small to medium size businesses. AEN provides support and leadership to its members in the areas of advocacy, negotiation and policy setting at both the State and National level. These functions are achieved by working with governments, industry, as well as individual enterprises.

The core activity of the members of AEN is the employment and vocational training of young people to the levels and in the method set out in the Australian Qualification Framework. AEN is unique in that it represents a network of companies which not only spans the state of Victoria but represents an integrated network that has developed in a planned and structured way. The enduring asset achieved as a result of this planned process is a well-developed and cohesive communication network. Since AEN’s inception this communication network has developed so that it can deal with both operational and policy issues, and can do this at all levels of group training operation.

In addition to supporting the needs of its constituent member companies, AEN provides a variety of support to small business and to schools. Over the past few years AEN has played a major role in the development of Vocational Education and Training (VET) in Schools and is an active promoter of school based apprenticeships.

About GAN Australia

The GAN is a business-driven alliance with the overarching goal of encouraging and linking business initiatives on skills and employment opportunities for youth - notably through apprenticeships. The GAN is a network where private sector companies, business federations and associations come together to share best practices,to advocate and to commit to action around youth employability and skills development. The initiative is driven by business leaders, who use this global platform to promote apprenticeship and internship programmes worldwide. They reach out in their respective countries and industries to mitigate the youth unemployment and skills mismatch crises. At the same time they strengthen their companies' competitive strategies by investing in their workforces.

 

ends

Transport infrastructure wave to spur construction higher - Master Builders

THE IMPENDING roll out of major government-led transport infrastructure will be good news for thousands of small construction businesses across Australia, according to newly-released forecasts from Master Builders Australia. 

Shane Garrett, Master Builders chief economist said, “Our Master Builders Australia Forecasts: 2019/20 to 2023/24 report released today indicates that engineering and civil construction activity is set to expand strongly until 2021/22, notching up its strongest performance since the mining investment boom at the beginning of the decade.

“As a result of record activity in natural resources investment, the volume of engineering construction had peaked at $142.8 billion in 2012/13. The subsequent slump was heavy, involving a 38.6 percent reduction in activity,” he said. 

“While latest data indicate that engineering construction activity has still been battling tough conditions, the eventual roll out of government-led infrastructure projects will see growth return in the near future,” Mr Garrett said. 

“We forecast that the volume of engineering construction work will expand by 12.5 percent by 2021/22 compared with 2018/19. Thereafter, activity will ease back at the pipeline of infrastructure work comes to an end.

“Both road and railway construction work will see big gains over this period, while the completion of the NBN means that telecommunications related activity will slip back,” Mr Garrett said. 

“At the moment, the actual volume of construction work underway is smaller than it was this time last year. While our forecasts do envisage growth returning, government can help by getting things moving on the ground with more urgency. There is particularly strong scope for this when it comes to small and medium-sized infrastructure projects,” he said. 

“As well as benefiting thousands of small building and construction businesses across Australia, a speedier roll out of infrastructure projects by government would give the wider public real and visible evidence that our economy continues to move forward."

www.masterbuilders.com.au

ends

More Articles ...

Contact Us

 

PO Box 2144
MANSFIELD QLD 4122