Tax reform could generate more work for tradies

It's been a while coming, but the release of the Tax Discussion Paper on March 30 has brought some tentative relief to a lot of people who were calling for tax reform. Both the Real Estate Institute of Australia and the Housing Industry Association (HIA) have been generating public interest in the removal of stamp duty in favour of a more efficient revenue-collecting system.

The cost of stamp duty is a particularly relevant point for tradies and builders, who could see a greater influx in the number of housing starts if the tax is done away with. As much as hammers, electric drills and other tools of the trade are important, so is knowledge around the forces that influence the industry.

"Housing will form an integral part of any successful future taxation reform. Independent research demonstrates that new housing is one of the most heavily taxed sectors of the Australian economy," said Shane Goodwin, HIA managing director, in a March 30 statement.

Taxes on property comprised about 9 per cent of all taxation in 2012 according to the government paper, which is almost double the OECD average of 5 per cent.

"Stamp duty on property conveyances is Australia's most inefficient tax, and housing taxation reform can unlock substantial productivity gains and boost economic growth in the Australian economy," continued Mr Goodwin.

With the potential for a vast increase in the affordability of housing supply - and residential construction - tradies will be dusting off their tool belts and looking to hire ladders to make the most of what could be a very prosperous time. At the moment the discussion paper is still open for submissions, so make sure to lend your voice if you have an opinion on these matters.

The aim of the discussion paper is to generate ideas, which can then be dissected into options later this year. These will then be presented in a white paper around election time in 2016.