Housing stimulus package “a massive relief”

Construction peak body, Master Builders Australia, has welcomed the Federal Government’s HomeBuilder package unveiled today, saying the grants will keep and create more jobs in the construction industry which has taken a hammering due to COVID-19.

As part of the Federal Government’s HomeBuilder program, owner-occupiers and first home buyers may receive a grant of $25,000 to put towards building a new home or renovating an existing home.

Several key criteria include income caps of $125,000 for an individual and $200,000 for a couple; and the house being built or renovated must be the applicant’s principal place of residence.

“HomeBuilder will be a lifeline for an industry facing a valley of death in the coming months,” said Master Builders Australia CEO, Denita Wawn.

“It will mean more new homes, more small businesses and jobs are protected and provide a stronger bridge to economic recovery for our country.

“Based on the Government’s estimated 27,000 grants, we think the scheme will be used for $10 billion in building activity, supporting the viability of 368,000 small builders and tradies – the businesses which employ 800,000 people in communities around Australia.”

Wawn said supporting the home building industry is essential to strengthening the economy and helping Australia recover from the impacts of the pandemic.

“Residential building activity gives back more than double to the communities that sustain it with every $1 invested in home building activity providing $3 to the wider economy,” she said.

“This means that HomeBuilder will provide a boost for thousands of tradies; the cafes, pubs, and ute dealerships that they frequent; as well as the thousands of building supply businesses that depend on the industry.

“The scheme is well targeted and should maximise the number of builders, tradies, workers, apprentices and households that will benefit.”

Wawn said the package, which includes grants for both new home builds and renovations, will deliver the best return on investment for taxpayers.

“The eligibility criteria mean that the vast majority of Australians will be able to access the scheme. More than 80 per cent of households have income of $200,000 or less,” Wawn said.

“The scheme is structured to get building activity going immediately and to provide safeguards around quality and consumer protection.

“Making HomeBuilder grants accessible through state and territory channels should streamline its rollout and building work must be carried out by a registered or licensed builder.”

Wawn said the package came just in time to rescue an industry on the brink of collapse.

“The building industry is simply too important to the economy and living standards to allow to collapse. It is the nation’s second largest industry, provides the most full-time jobs, trains the most apprentices and is 98 per cent made up of small businesses.

“Master Builders welcomes the Government’s HomeBuilder scheme.”