Tradespeople

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The upkeep and maintenance of rental properties by tradespeople and maintenance workers is directly related to the tax offset of "Other Rental Deductions" according to Nicholas Proud, principal, Property and Construction Analytics Australia.
He said the most recent ATO Taxation data saw Other Rental Deductions soar to $18.376 billion for 2013-14 which via negative gearing drives repairs and maintenance activity in such a way that should see tradies taking more than a casual interest in the result of the July 2 election.
“Outside of council rates, water charges , travel and insurances there are a lot of plumbers, sparkies, chippies and other asset maintenance workers such as cleaners, gardeners and handymen whose work makes up this Other Rental Deductions figure that can be claimed by property owners at tax time," he said.
“Unlike any election before the value of this type of work assisted by negative gearing concessions is at record levels.
“In contrast to other elections, annual Other Rental Deductions in 1996 sat at $4.55 billion at the time of the election of the Howard Government, it has risen by $13.83 billion per annum since then. Even more recently, since the 2007 election of the Rudd Government the annual value of Other Rental Deductions declared has increased by $6.82 billion.
“What hasn’t been factored into account really is the impact on those smaller handy trades that comprise a significant part of the property and construction workforce if the negative gearing concession is changed or quarantined to new dwellings only.
 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="156">
Taxable Income
</td>
<td valign="top" width="100">
Other Rental Deductions
</td>
<td valign="top" width="89">
Other Rental Deductions No.
</td>
<td valign="top" width="63">
Average Deduction
</td>
<td valign="top" width="64">
%
</td>
</tr>
<tr>
<td valign="top" width="156">
Less than or equal to $18,200
</td>
<td valign="top" width="100">
$2,253,074,560
</td>
<td valign="top" width="89">
277,693
</td>
<td width="63">
$8,114
</td>
<td width="64">
14%
</td>
</tr>
<tr>
<td valign="top" width="156">
$18,201 to $37,000
</td>
<td valign="top" width="100">
$2,325,522,579
</td>
<td valign="top" width="89">
314,028
</td>
<td width="63">
$7,405
</td>
<td width="64">
16%
</td>
</tr>
<tr>
<td valign="top" width="156">
$37,001 to $80,000
</td>
<td valign="top" width="100">
$5,632,316,431
</td>
<td valign="top" width="89">
702,735
</td>
<td width="63">
$8,015
</td>
<td width="64">
35%
</td>
</tr>
<tr>
<td valign="top" width="156">
$80,001 to $180,000
</td>
<td valign="top" width="100">
$5,686,914,423
</td>
<td valign="top" width="89">
575,554
</td>
<td width="63">
$9,881
</td>
<td width="64">
29%
</td>
</tr>
<tr>
<td valign="top" width="156">
$180,000 or more
</td>
<td valign="top" width="100">
$2,479,123,491
</td>
<td valign="top" width="89">
149,268
</td>
<td width="63">
$16,609
</td>
<td width="64">
7%
</td>
</tr>
<tr>
<td valign="top" width="156">
Total
</td>
<td width="100">
$18,376,951,484
</td>
<td width="89">
2,019,278.00
</td>
<td valign="top" width="63">
 
</td>
<td valign="top" width="64">
 
</td>
</tr>
</tbody></table>
 
“By income, those on a taxable income under $180,000 are likely to declare an Other Rental Deduction under $10,000.
“Across the electorates, 126 out of the 150 lower house seats on average declared an Other Rental Deduction under $10,000.
“If negative gearing was quarantined to new homes only there would be no concession for  the upkeep of existing homes, which are the homes that most need the reinvestment.
“With no offset it is likely that only those repairs and maintenance that are most fundamental to the upkeep of the property will be made which not only will reduce activity and also have the potential to reduce the quality of rental stocks in the lower yield suburbs which would be detrimental to tenants.
“Exactly how many entry-level handy jobs and low-level trades maintenance workers would go is difficult to say, but the growth in this deduction since 1995-96 shows a reasonable baseline to consider the scale of any such decline."
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Why the tradies will influence the 2016 election result: Nicholas Proud

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Uncertainty around the housing market has affected the cost of renovating in NSW with costs rising by just 0.8 per cent in the past year.
According to data released by ServiceSeeking.com.au, NSW costs have fallen below the national Consumer Price Index (CPI) for the same time period.
The state average for a tradie has stabilised at $60.25 an hour, 2.3 percent less than the national average of $61.65
It’s a great time to get stuck into your renovation plans, says ServiceSeeking.com.au.
 “If you’ve been dreaming of a new kitchen, bathroom, entertaining area or applying a new coat of paint to your house, then now is the time to take advantage of a slowing down in home renovation prices," said ServiceSeeking.com.au CEO Jeremy Levitt
It is cheaper to renovate in NSW than Western Australia ($67.34 up 1.8 per cent) and Queensland ($63.14 up 4.4 per cent).
Victoria is the cheapest and the only state to record a drop in prices by 2.2 per cent to $57.28.
The trades which bucked the trend in NSW were carpentry (up 11.3 per cent on the national average at $62.83 an hour) and painting (where prices were 10 per cent higher).
Other big price changes affected electricians - who were 9.4 per cent cheaper in NSW than the national average - and plumbing at 4.2 per cent cheaper.
The prices were derived by comparing 52,000 quotes submitted through the online services marketplace during the FY16 Q4.
To view price changes across 10 popular renovation services around the country, including major capital cities, see <a href="https://ib3.bislr.net/m?s=serviceseeking&amp;m=s_4e868d04-e38e-4d68-9756-a7b45fffcc78&amp;u=e1jq4wvfdtfm2e2174w3ee1k5n346ga45mu30ha25mw3ehhj5muk4dhr8cu4ad2568v46&amp;r2=d1u78w1u5wqqexvq5ttpawkpd5hpawv5cnnpjvk75thpyvkd5tgqabvjcnq6yxk1ehmpyvkk&amp;n=1" target="_blank">www.serviceseeking.com.au/renovations</a>
 
<img src="/images/2016/08/03/Screen%20Shot%202016-08-03%20at%209.28.37%20AM.png" alt="">
 
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j.ballantyne1990-6AQqhLzZaK

How much to pay your tradie? NSW cheaper than national average for renovations

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Hipages, Australia’s website for finding and hiring trusted tradies, has partnered with the Housing Industry Association (HIA), whose membership builds over 85 percent of all new residential detached, medium density and high rise construction work and undertakes over 80 percent of renovations in Australia.  
The new partnership will see HIA members having their membership visible on their hipages profile, indicating to customers which qualified trade and building professionals are registered with the HIA, as well as access to over 90,000 hipages’ monthly job requests.
“We’re thrilled to start working closely with the HIA team,” said Gideon Kline, Chief Commercial Officer of hipages. 
With over $1.35 billion worth of jobs processed annually, hipages has helped over 1.1 million Australians get projects done around the home, helping homeowners find professionals that are ready and available to do the job while providing tradies with tools to easily manage their workflow and grow their business.
Customers have access to more than 80,000 trade and building professionals, providing a simple platform to see reviews, contact businesses directly and get quotes within minutes.
“Technology is shaping the industry and with thousands of local recommendations and real time information at your fingertips, getting help and finding work has never been easier,” said Kline.
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jchancellor-FAypfDUnLy

Property 101: hipages partners with the HIA

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Step-by-step guidelines to help identify asbestos in domestic properties has been released by the Asbestos Education Committee in partnership with the Asbestos Diseases Research Institute.
The guides, ‘Asbestos Awareness Healthy House Checklist – A Homeowners Guide To Identifying Asbestos-Containing Materials’ and the ‘Residential Checklist For Tradies – A Tradespersons Guide To Asbestos Containing Materials In Domestic Properties’ is available from <a href="https://www.asbestosawareness.com.au" target="_blank">www.asbestosawareness.com.au</a>.
The checklists include product images and lists each possible location where asbestos-containing materials might be found both inside and outside homes as well as simple step-by-step instructions.
Cherie Barber, Asbestos Awareness Campaign Ambassador said the health risks to anyone working on domestic properties when asbestos materials are disturbed is something every Australian needs to take seriously because asbestos doesn’t discriminate.
“The Healthy House Checklist provides a practical guide for homeowners enabling them to conduct a simple step-by-step easy to follow visual inspection of their property," she said.
“In doing so, homeowners will improve their understanding of the sorts of products to look for, the locations where asbestos might be found and how to manage these products safely. 
"The checklist also enables homeowners to maintain a record of possible asbestos locations should work or renovations be anticipated in the future and monitor asbestos-containing materials to ensure they remain sealed,” she said.
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“Until now, the only information available to homeowners wishing to conduct visual inspections of residential properties has often been cumbersome, complex, extensive documents that can be difficult to access."
Peter Dunphy, Founding Chair of the Asbestos Education Committee said, tradespersons are particularly at risk because all too often they’ve come from a culture where asbestos risks have been ignored.” 
“While tradies may have worked with asbestos in the past and ignored the warnings, they need to be aware that the more a person is exposed to fibres, the greater the risk of developing asbestos-related diseases so it’s vital that they conduct visual inspections of properties to look for the potential dangers to ensure they’re managed safely," he said.
“The ‘Residential Checklist For Tradies – A Tradespersons Guide To Asbestos Containing Materials In Domestic Properties’ will increase Tradies’ understanding of the various products they need to be wary of when working on residential properties and ensure they engage suitably qualified professionals to conduct asbestos-related work or remove asbestos-containing materials safely."
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Property 101: Asbestos healthy house checklists for homeowners and tradies launched

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Australia is in the midst of a tradie shortage in years with many home owners unable to find anyone qualified to complete their home improvement jobs, according to ServiceSeeking.com.au
On average, jobs listed on ServiceSeeking.com.au receive four quotes, however, there are a number of specific categories that aren't getting filled.
The website noted apprenticeships are now at their lowest since 2004, according to figures released by the Mitchell Institute. 
"This gap in the market offers a great opportunity for tradies looking to grow their business," Jeremy Levitt, CEO of ServiceSeeking said.
"The few tradies that do work in these industries are never short of work and charge premium prices as customers grow desperate to get them done."
The percentage of niche jobs in FY17 with no tradies:
<ol>
<li>Bathtub resurfacing (69%)</li>
<li>Glass installation (64%)</li>
<li>Staircase jobs (64%)</li>
<li>Garage, shed and carport installation (60%)</li>
<li>Stonework and masonry jobs (56%)</li>
</ol>
  
<table style="width: 712px;"><tbody>
<tr>
<td>
Niche Category
</td>
<td>
Missed revenue (FY17)
</td>
<td>
Average value per job
</td>
<td>
% of jobs with no tradies
</td>
</tr>
<tr>
<td>
Stonework and Masonry
</td>
<td>
$996,875
</td>
<td>
$3,438
</td>
<td>
56%
</td>
</tr>
<tr>
<td>
Cabinetmaking
</td>
<td>
$898,149
</td>
<td>
$1,576
</td>
<td>
39%
</td>
</tr>
<tr>
<td>
Garages, sheds and carports
</td>
<td>
$717,723
</td>
<td>
$643
</td>
<td>
60%
</td>
</tr>
<tr>
<td>
Insulation Installation
</td>
<td>
$645,641
</td>
<td>
$1,416
</td>
<td>
55%
</td>
</tr>
<tr>
<td>
Staircases
</td>
<td>
$504,000
</td>
<td>
$2,400
</td>
<td>
63%
</td>
</tr>
<tr>
<td>
Carpet laying and Installation
</td>
<td>
$404,172
</td>
<td>
$1,199
</td>
<td>
41%
</td>
</tr>
<tr>
<td>
Bathtub Resurfacing
</td>
<td>
$236,000
</td>
<td>
$500
</td>
<td>
69%
</td>
</tr>
<tr>
<td>
Tinting and films
</td>
<td>
$122,563
</td>
<td>
$360
</td>
<td>
46%
</td>
</tr>
<tr>
<td>
Fridge repair
</td>
<td>
$68,969
</td>
<td>
$146
</td>
<td>
55%
</td>
</tr>
<tr>
<td>
Glass Installation
</td>
<td>
$30,800
</td>
<td>
$560
</td>
<td>
64%
</td>
</tr>
<tr>
<td>
Total missed revenue:
</td>
<td colspan="3">
$4,970,038
</td>
</tr>
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This data was derived from over 52,000 quotes submitted by customers to <a href="https://serviceseeking.apms5.com/anywhere/m?s=serviceseeking&amp;m=s_205f66db-c70a-4d91-bce6-8c33e656d58d&amp;u=e1jq4wvfdtfkeh9r890m4dht5n138hht5mu36d9j5mwkaha25mu34chq8cw3echh6ct48&amp;r2=d1u78w1u5wqn6tbjetmp6takcnjppubecwq66vvd5tgqa&amp;n=3" target="_blank" rel="noopener noreferrer">ServiceSeeking.com.au</a> over FY17.
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