Building industry welcomes federal stimulus lifeline

A federal stimulus package to be unveiled today will be a lifeline for an industry 'facing a valley of death', according to Master Builders Australia. The industry group believes that the HomeBuilder scheme will be a massive relief to the thousands of home builders and tradies around the 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,” chief executive officer Denita Wawn said. Grants are expected to be available towards new home builds and for renovations, but these home improvement grants of up to $25,000 may have to involve a spend of more than $150,000. Ms Wawn said the scheme was 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,” she said. “The lag effect of building activity means that HomeBuilder comes just in time for builders and tradies staring out at a valley of death with forward work for the next 6 -12 months fast evaporating.” GDP figures released yesterday show Australia's economy shrank 0.3 per cent in the March quarter, sparking a concession from Treasurer Josh Frydenberg that the nation had entered a recession. The Housing Industry Association warned that the long lead-times for residential building meant that the full impact of the COVID-19 crisis on residential building would not hit GDP until later in the year. “The persistent decline in residential building activity has detracted from GDP for the last six quarters, and is already 14 per cent down from the peak," HIA chief economist Tim Reardon said. “This contraction was prior to the COVID-19 restrictions impacting home building. “Leading indicators show that a sharper contraction in residential building activity is imminent." Without appropriate support up to half a million jobs could be at risk, he said. Update - HomeBuilder details released From today until December 31, HomeBuilder will provide all eligible owner-occupiers (not just first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder applicants will be subject to eligibility criteria, including income caps of $125,000 for singles and $200,000 for couples based on their latest assessable income. A national dwelling price cap of $750,000 will apply for new home builds, and a renovation price range of $150,000 up to $750,000 will apply to renovating an existing home with a current value of no more than $1.5 million. The Federal Government says the program is expected to provide about 27,000 grants at a total cost of around $680 million. HomeBuilder complements existing state and territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme. More information on HomeBuilder, including eligibility, can be found on the Treasury Coronavirus Economic Response website

Building industry welcomes federal stimulus lifeline

Industry Queensland

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