PM to unveil $25k cash grants for home renos worth at least $150,000, in construction industry stimulus
Couples earning up to $200k will be eligible for cash grants to build new homes in an almost $1 billion construction stimulus package the PM will unveil on Thursday. Here’s how to qualify.
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Cash grants worth $25,000 to renovate or build new homes will be open to couples earning up to $200,000, as part of a $688 million package to save thousands of tradie jobs.
The $25,000 grants will also be open to singles earning up to $125,000 as part of the plan to turbocharge the construction sector.
Under the HomeBuilder scheme, to be announced by Prime Minister Scott Morrison on Thursday, grants will be for big projects only, such as home extensions or an interior remodel – not small DIY renos.
Investors will be blocked from using the scheme, which will only be open to owner-occupiers. To be eligible, renovations must be worth $150,000 at minimum and not more than $750,000.
The high threshold will ensure big jobs to create weeks or months of work for tradies, rather than just small, quick jobs.
The seven-month scheme opens from Thursday and will close on December 31, as a time-limited boost for the construction sector.
Building works must begin within three months of the contract being signed. The cash can be used to build a new home valued up to $750,000 or to renovate a property that isn’t already worth more than $1.5 million.
“Residential construction is vital to Australia’s economy, with dwelling investment worth more than $100 billion or around 5 per cent of our economic output each year,” Housing Minister Michael Sukkar said.
“HomeBuilder will not only support the jobs of carpenters, plumbers, bricklayers and electricians on our building sites, it will also support the timber mill workers who produce the frames and trusses and the manufacturing workers who make the glass, brick and tiles for our homes.”
Mr Morrison said the scheme, part of the JobMaker initiative, would spark a “tradie-led recovery” from coronavirus.
It would “ensure the money gets used how it should by families looking for that bit of extra help to make significant investments themselves,” he said.
Renovations not connected to the main house, such as swimming pools, tennis courts, outdoor spas and saunas, or detached sheds or garages, will not be eligible for the cash grants. The scheme will also only allow builders who were licenced before today to prevent a raft of dodgy contractors setting up overnight to take advantage of the scheme.
Brothers Matt and Jon Blacket, who own boutique Adelaide construction company Imagine Build and Landscape, had steady work throughout coronavirus but feared the pipeline of jobs would shrink in coming months.
But with renovation grants on the horizon, Matt said: “It will become less cutthroat, there'll be more jobs and you might be winning a higher percentage of your quotes than you would be.
“People might be keen to get a few more things done or add on to the jobs they were wanting to do, and that would definitely help us out,” he said.
“With that sort of money people might be tempted into opening things up a little more and putting a room on out the back, or co-ordinating some of the bigger building works with a kitchen, a bathroom, an open-living area and maybe an outdoor deck … and some landscaping work.”
Renovation rescue a shot in arm for workers
The Federal Government’s renovation rescue package will be like “like a shot of adrenaline into the arm of the industry”, Master Builders SA chief executive Ian Markos says.
He said the industry had feared the pipeline of new construction jobs would dry up as families were financially hit by the coronavirus crisis.
They expected the “cliff” to hit in September – the same time the $1500-a-fortnight JobKeeper payment is due to end.
Mr Markos said the cash grant scheme would give people an incentive to spend on home improvements.
“It will probably enable the extension of living areas, which are very popular these days, with potentially an extension of a family room with a bathroom so people can get more living space,” he said.
“Some people have been hanging off and not wanting to commit to signing a contract, and I think this will now get those people interested and excited and hopefully they commit. The whole idea was to get a lot of work; if it’s a small job like replacing some gutters, you’re in and out in a day.
“If you’re doing a new house build, that could take up to 12 months, where people have got a job for that period of time.
“And, depending on the renovation, that could be six months of work or plus for someone.”
The package is smaller than the $13 billion plan Master Builders Australia had suggested but contains the key elements of cash grants for new homes and renovations.