Published On : 07 Jun 2020
The government has released a fourth stimulus package, this time targeting the residential construction market in Australia. The HomeBuilder Scheme has been valued at $688 million and will start on Thursday the 6th of June finish at the end of the year.
Australians that sign contracts to build a house or renovate an existing property will receive $25,000 from the government.
“If you’ve been putting off that renovation or new build, the extra $25,000 we’re putting on the table, along with record low interest rates means now’s the time to get started,” said PM Scott Morrison.
The stimulus package comes off the back of a 30% drop in the housing and construction sector. New build forecasts have fallen from 171,000 to 111,000 since Feb 2020. Scott Morrison is hoping this cash grant will result in a “tradie-led recovery”. He also said that the package will support 140,000 direct construction jobs and a million jobs in related industries including those who are architects, engineers, suppliers, and manufacturers.
To be eligible the following criteria must be met:
- As a single person, you earn a maximum of $125,000 a year, or $200,000 as a couple.
- If building a new home, the maximum value of the home (including land) should be $750,000
- If renovating, the value of renovation should be between $150,000 and $750,000 with the house valued below $1.5 million before work begins.
Renovation work must include remodelling or adding an extension. Swimming pools, tennis courts, spas and saunas, sheds or garages and any structures not attached to the property are not eligible.
- The work must be done by a licensed builder and not the homeowner. No DIY projects.
While much of the industry looks at this as a huge relief, there are those that think that the stimulus package is not big enough and too specific.
Opposition housing spokesman Jason Clare said that modelling shows that the package is not significant enough to reverse the downturn. He expects 10,000 to 15,000 households to sign up for the grant - much lower than the 27,500 households as projected by Scott Morrison’s government.
We want to know your thoughts about ongoing projects and new work opportunities.
Do you think receiving $25,000 for renovations over $150,000 is just the boost required to catapult the residential construction sector?