THE State Opposition has criticised the so-called “tradie tax” which will see registration fees for tradespeople climb by up to 10pc.
State Opposition Leader Peter Malinauskas said the fee increase would make it “even harder” for hopeful plumbers, gas fitters or electricians, forecasting fees of up to $1700 for individual tradespeople just to get started in the industry.
But the State Government has hit back at the claims, stating the fee increases are balanced out by recently announced changes to the Compulsory Third Party insurance scheme.
Mount Gambier business owner Michael Mustart is one of many businesses set to be affected by the price rises, which have been introduced in part to help offset the state’s $517m shortfall in GST revenue.
Under the 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 which will impact Mr Mustart the most after the July 1 changes.
“I already pay up to $20,000 per year on five commercial vehicles,” Mr Mustart said.
“If that is increased by 5pc each that is a lot of extra money.”
Highlighting the increase to light commercial vehicle registration, Mr Mustart said it may come down to tradespeople being seen as an “easy target”.
“Someone will have to pay for it down the line which will end up being the consumer,” Mr Mustart said.
“It will also affect the workers too because electricians are a licensed trade – it is up to the individual to pay their own fees.”
With fee increases having a significant impact on all trades, Mr Mustart said the price change would “hurt everyone”.
Mr Mustart said owning a business presented numerous challenges.
“Keeping the cost down for the consumer while also ensuring your workers are given a good wage is easily the most difficult,” Mr Mustart said.
“You also need to keep in mind the business costs as well.
“People are paying the same amount for an electrician as they were 20 years ago but everything else is getting more and more expensive.”
With the industry “booming” in the South East and in particular Mount Gambier, Mr Mustart said his company was the busiest it has been.
“I have been told the trade industry is strong around the state especially here where we are as busy as ever.”
