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GST the ‘greatest challenge’

THE complexity of the GST and other tax changes and their far reaching effects on builders, subcontractors and homebuyers present the greatest challenge faced by the building industry.

According to Master Builders’ Australia, the next three to six months will be an extremely difficult period for builders as they adjust to the new tax system.

MBA director Michael McLean said the organisation had been inundated with calls which highlighted that the level of confusion and uncertainty was higher than anticipated.

“Many builders have under-estimated the high demand for new homes and renovations leading up to the GST and consequently have had their jobs delayed by shortages of tradesmen and unavailability of materials.”

Many in the industry are waiting to see which builder will draw first blood with expectations high that some builders will fold in the coming months as has already occurred in the eastern States.

Pressure is also mounting from irate customers who want their builder to foot the GST bill because their homes are taking longer to complete than was contracted.

The Builders Registration Board are expecting a rush of disputes because of the delays which builders believe are beyond their control.

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