Master Electricians Australia (MEA) welcomes several key measures in the 2026–27 Federal Budget that will benefit electrical contractors, apprentices, and the broader construction sector.

However, MEA calls on the Federal Government to ensure the existing employer incentive to hire first year apprentices ($5,000 over 2 payments for apprentices in the clean energy and housing construction sectors, but only $2,500 for other sectors) remains and is not further reduced or replaced by a subsidy to GTOs.

2026-2027 Budget Inclusions

Free Access to Mandatory Australian Standards

In a significant win for construction businesses, the Federal Government has announced free access to mandatory Australian Standards for construction, occupational health and safety, and product safety.

MEA has been at the forefront of advocacy for this reform and will continue to work closely with Standards Australia and other key stakeholders on future initiatives.

The free access will be for basic read-only documents with the actual Standards freely provided still being determined. MEA will provide improved online access to the Wiring Rules and core referenced Standards for members.

Instant Asset Tax Write-Off – Now Permanent

It has also been confirmed the $20,000 Instant Asset Write-Off will be made a permanent feature of the tax system, ending years of uncertainty for small businesses. MEA has consistently called for permanency rather than annual extensions that leave members unable to plan investment with confidence.

Streamlining Recognition & Licensing Process for Migrant Tradespeople

$85.2 million will be invested over four years from 2026–27 to modernise the Trades Recognition Australia (TRA) system. This includes:

• a new skills assessment system with electricians and plumbers named as the priority pilot trades for streamlined assessment-to-licensing pathways. The goal is to cut the time for migrant tradespeople to enter the workforce by up to 6 months and unlock up to 4,000 additional skilled trades workers per year.
• a new TRA program to assess onshore visa holders’ existing qualifications and practical trade experience.
• strengthened regulatory oversight of Assessing Authorities, including mandatory annual performance reports from 2027.

MEA welcomes this measure to increase the pool of licensed electricians in Australia and we will remain engaged during the design of the pilot program.

 Incentives for SME Employers Hiring Apprentices and GTOs

The budget papers announce $266.2 million ‘savings’ over four years from 2026–27 (and $106.3 million per year ongoing) through reforms to the Australian Apprenticeships Incentive System, redirecting employer incentives to small and medium employers and Group Training Organisations.

MEA is deeply concerned by the announcement that employer support under the Key Apprenticeship Program will be reduced from $5,000 to $4,000 from 1 January 2027. It has also been confirmed that employers with more than 200 employees will no longer be eligible for this funding support, with the exception of those hiring apprentices via Group Training Organisations (GTOs).

Employer support for hiring apprentices has been eroding in recent years, with the Key Apprenticeship Program only applying to apprentices in the clean energy and housing construction sectors. Other employers with electrical apprentices outside these 2 sectors had support reduced to $2,500 from January this year. MEA has been actively advocating to government for increased financial support for employers who take on and train apprentices. Employers already carry significant direct and indirect costs in developing the next generation of skilled workers, and current support levels fall well short of reflecting that investment.

Rather than reducing assistance, MEA maintains that employer incentives should be strengthened to better support apprenticeship completion and participation across the industry.

Following the Budget announcement, MEA has written to the Minister for Skills and Training and will continue to advocate for an increase in support for employers hiring electrical apprentices regardless of the sector, to more appropriately recognise the training and compliance role undertaken by employers in workforce development.

Members in SEQ looking to hire an apprentice through a GTO are recommended to contact Electro Group Apprentices Queensland www.electrogroup.com.au. MEA can assist members outside SEQ find a suitable GTO.

Taxing on Discretionary Trusts and Impacts if You Choose to Restructure

The budget has proposed a flat 30% tax rate to be applied to all taxable distributions from discretionary trusts (with some exceptions).  If successful, this will take effect from 1 July 2028.

Rollover relief will be available to assist small businesses and others that wish to restructure out of a discretionary trust into other arrangements, such as a company or a fixed trust. This will provide expanded relief from income tax consequences, including capital gains tax, for those who choose to restructure, and will be available for three years from 1 July 2027. Specific arrangements will be put in place by the Australian Securities and Investments Commission to support small businesses that wish to incorporate.

MEA will advocate for better small business support and will keep members informed as more details are released.

It is important to note that if you have been impacted and are considering a restructure of your business, you may need to obtain a new electrical contractor licence in the name of the new legal entity.  Some jurisdictions have additional requirement to achieve this – such as Qld which has the QTP requirement). Please call the MEA team if you’d like to discuss this further.

National Electrical Licensing – Cross Border Mobility

The federal government has committed to funding National Competition Policy reform, including progressing national occupational licensing, prioritising the electrical and engineering sectors.

A national licensing framework will assist electricians to move across state borders without reapplying for licences or paying additional fees.

Targeted consultation is underway and MEA has a seat at the table representing member interests. We will work to prevent the scheme from adopting a ‘lowest common denominator’ approach while reducing administrative burdens on contractors.

Cheaper Home Batteries Program

The budget confirms the federal government’s prior announcement of a continuation and expansion of the Cheaper Home Batteries Program.

As announced in December 2025, the Program will expand from original estimates of $2.3 billion to an estimated $7.2 billion over the next 4 years. STCs will be tiered and apply based on the size of the battery.

According to the government, over 370,000 batteries have been installed through the Cheaper Home Batteries program, complementing the 4.3 million solar PV systems on Australian rooftops.

MEA reminds members that to carry out battery installations under the Cheaper Home Batteries Program, installers must hold SAA accreditation for battery installation. A reminder that MEA’s free ‘Business Foundations’ online stream of the Master Program attracts SAA CPD points! Enrol now via the MEA website or call us to arrange your free access.

Funding has also been committed to development of the Consumer Energy Resources Roadmap and National Technical Regulator. MEA participates in industry consultation on this work.

Capital gains tax

The Government will replace the 50 per cent Capital Gains Tax (CGT) discount with a discount based on inflation and introduce a minimum 30 per cent tax on gains from 1 July 2027.

This reform means that investors will only pay tax on their real capital gain, restoring the original intent of the CGT arrangements. The CGT reforms will only apply to gains arising after 1 July 2027. Investors in new builds will be able to choose the 50 per cent CGT discount or the new arrangements.

Loss Carry Back

The Government is reintroducing loss carry back to support business risk taking and resilience.  From 2026–27, eligible companies that make a loss in the current income year will be able to use that loss to get a refund against tax paid in the prior two income years. This is expected to benefit up to 85,000 companies, mostly small businesses.

The Government is also introducing loss refundability to support new start‑up businesses. From 2028–29, small start‑ups in their first two years of operation will be able to get a refund for tax losses, up to the value of fringe benefits tax and withholding tax paid on employee wages. This is expected to benefit up to 25,000 young companies each year, providing valuable cash flow support.

PAYG Payment Options

Businesses will be able to change their pay as you go (PAYG) instalments when business conditions change, by:

• providing businesses with flexibility to opt in to monthly PAYG instalments from 1 July 2027, and
• expanding access to the ATO’s dynamic instalments pilot using business software to more accurately calculate PAYG instalments.

The Government will work with states on reforms to payroll tax administration.