Picture: J.L. “FRED” SMITH
A RISE in State Government fees will see South East tradespeople such as Millicent electrician Jason Faulkner face significant increases to operational costs under changes dubbed by Labor as the ‘tradie tax’.
The state’s licensed tradespeople will pay an extra five to 10pc across several fees, which Labor claims could cost up to $1700 for individuals to get a start in the industry.
As a small business owner, Mr Faulkner said the fee increases will affect trades people’s bottom line.
The E-Smart Electrical proprietor was harshly critical of the rises announced ahead of the annual State Budget, which will be handed down in Adelaide today by State Treasurer Rob Lucas.
“We will be up for a range of extra State Government charges for our contractors’ and electricians’ licences, as well as vehicle costs,” Mr Faulkner said.
“These higher charges are ridiculous and a disincentive to expand our business.
“The State Government should be encouraging us and not making us pay higher fees.”
Mr Faulkner has expanded the firm over the past five years of his ownership.
It now has three qualified electricians, three apprentices and two support staff.
Under the State Government changes, individual contractor licenses will increase by 10pc to $638, while registration fees for tradies performing plumbing, gas fitting or electrical will hit $507, also a 10pc increase.
Trailer registration and driver’s licence renewal will both climb by around 5pc, as will light commercial vehicle registration.
The increases have been introduced in part to help offset the state’s $517m shortfall in GST revenue with the State Government claiming the price hike will be offset by changes to the Compulsory Third Party insurance scheme.
In contrast, New South Wales has slashed license fees across 13 home building trades from $605 every three years to just $51 every five years to make it easier for tradies to get ahead.
