RBA hold while trust changes loom
The RBA has held the cash rate at 4.35%. The decision follows recent warnings about economic conditions. No rate cut was delivered at this meeting.
4.35% — RBA cash rate held at this level, keeping borrowing costs elevated for trade businesses.
Will the RBA rate hold at 4.35% hurt my trade business borrowing costs?
Builders, plumbers and electricians carrying business loans or mortgages see no relief yet. Borrowing costs stay high, squeezing cash flow for trade businesses.
Key takeaways
- The RBA has kept the cash rate on hold at 4.35%, meaning no relief on loan repayments.
- Trade businesses carrying debt will continue facing high borrowing costs.
- The decision follows warnings about broader economic conditions, though details are thin.
- Tradies with variable-rate business loans or mortgages are directly affected by the hold.
Related
ATO ramp up of small business debt collection
Master Builders Australia has published a news item saying the ATO is stepping up its debt collection against small businesses. The text provided gives no further detail on the measures, timing or amounts.
Why it matters: Builders and other trade businesses with outstanding tax debts may face firmer ATO collection action, which could strain cash flow. Details are not in the source text, so check the ATO or Master Builders directly.
Builders Oppose Proposed Jobs Framework and Supplier Code
Master Builders Australia opposes the proposed Secure Australian Jobs Framework and changes to the Commonwealth Supplier Code. The article excerpt gives no further detail on what the proposals contain.
Why it matters: Builders and contractors working on or seeking Commonwealth-funded projects could face new employment and supplier requirements. The practical impact is unclear until details of the proposals are released.
WA passes new payment protection laws for subcontractors
Western Australia's Parliament has passed new payment protection laws for subcontractors. The changes, made through an amendment to the Building and Construction Industry (Security of Payment) legislation, aim to give subcontractors stronger protection against insolvency.
Why it matters: Subcontractors in WA, including plumbers, electricians, carpenters and other trades, get stronger protection if a head contractor becomes insolvent. This could reduce the risk of unpaid work and cash flow problems.