The National Electrical and Communications Association (NECA) has welcomed the Federal Budget, which includes several measures advocated for, that will benefit the electrical contracting industry.

In a win for small and medium-sized businesses, the government announced an immediate expansion to instant asset write-off rules, with the threshold lifting from $25,000 to $30,000, and applying to multiple purchases.

Eligibility has also been expanded to firms with a turnover of up to $50m.  The move is aimed at improving cash flow for small and medium-sized businesses while boosting spending and investment by operators. 

The Treasurer, Josh Frydenberg, committed to increased spending on infrastructure and apprenticeships providing electricians with a pipeline of work while addressing the skills shortage.

The government will invest over $525 million in the vocational education and training (VET) sector, with funding aimed at industries with skills shortages.

Infrastructure spending received a further boost with $100bn allocated for projects over the next ten years, all of which will require a significant amount of electrical work.  

Suresh Manickam, CEO of NECA, said:

“NECA is pleased to see the government rightly investing in areas that are critical to the success and prosperity of Australia. 

“We’ve been working closely with state and federal politicians to ensure apprenticeships are properly funded and their value to the wider economy is recognised. The financial support outlined by the treasurer is a positive step forward.

“Hardworking electrical contracting firms will benefit from the instant asset write-off but more needs to be done to support small and medium-sized businesses at a time when credit from traditional lenders is drying up and slow or non-payment continues to be a major issue.

“We are looking forward to working with all parties as we move towards the federal election to ensure the next government recognises the critical role of the electrical contracting industry and implements policy so small and medium-sized business – the backbone of the Australian economy – can thrive.”