HomeBuilder program: $25k grants for renovations, new builds
Labor has criticised the Morrison Government’s plan to offer $25,000 grants for those looking to build or renovate their home, saying the scheme is too restrictive and poorly targeted. FIND OUT IF YOU’RE ELIGIBLE
NSW
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The Federal Opposition says Prime Minister Scott Morrison’s home renovation cash splash won’t go where it’s needed.
The $688 million HomeBuilder program, which will offer grants to people to build or renovate their home, should instead go towards social housing and building accommodation for essential workers, Labor Leader Anthony Albanese said.
“We’re concerned about the targeting of this package,” Mr Albanese said, adding the strict rules for who is eligible meant most people won’t be able access the grants.
“This package today will require $150,000 of expenditure at a time of economic uncertainty,” he said. “Not many people have $150,000 ready to go, ready to sign a contract, when their jobs and the economic uncertainty that is out there will provide a hindrance to that investment.”
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Shadow housing minister Jason Clare said: “There’s not many Australian battlers who have a lazy $150,000 to renovate their bathroom or the kitchen.”
Under the plan announced today, homeowners can apply for $25,000 grants if they sign contracts to build or substantially renovate their home by the end of the year, supporting 140,000 direct jobs and one million related jobs in the residential construction sector.
Prospective first home buyers as well as existing owners will be able to access the grant to build a new home or substantially renovate a house where the contract is entered into between 4 June 2020 and 31 December 2020.
The grant will not be available to those seeking to build or improve an investment property, and renovations must relate to improving the liveability of a house, with extensions such as swimming pools, tennis courts and garages not included.
To be eligible an individual cannot earn more than $125,000 and a couple more than $200,000.
It is hoped the program will kickstart a pipeline of projects to keep builders, contractors, property developers, construction materials manufacturers, engineers, designers and architects in business amid the COVID-19 recession.
HomeBuilder is a time-limited and demand-driven grant program to help the residential construction market to bounce back from the COVID-19 pandemic.
Mr Morrison said the government's JobMaker program was backing a "tradie-led recovery" to help spark the economy.
"This investment isn’t just about helping Australians bring their dream home to life, it’s about creating jobs and helping support the more than one million workers in the sector including builders, painters, plumbers and electricians across the country," he said.
"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."
Treasurer Josh Frydenberg said the housing and construction industry was "vitally important" to the Australian economy, with dwelling investment worth more than $100 billion.
"With dwelling investment expected to decline by around 20 per cent through the June quarter, the HomeBuilder program will support residential construction activity and jobs across the industry at a time when the economy and the sector needs it most," he said.
Housing Minister Michael Sukkar said the HomeBuilder package would be a further boost to existing programs designed to help people get into the property market, while supporting the residential industry.
"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," he said.
"The Morrison Government’s HomeBuilder investment is also on top of the more than $6 billion invested each and every year by the Commonwealth in forms of housing assistance."
How to qualify for the $25,000 grant.
To be eligible an individual cannot earn more than $125,000 and a couple more than $200,000.
You must enter into a contract between 4 June 2020 and 31 December 2020 to either:
a) Build a new home as a principal place of residence with a value up to $750,000 including land.
b) Substantially renovate an existing home as a principal place of residence with renovations valued between $150,000 and $750,000 with the dwelling not valued at more than $1.5 million before the renovation.
Construction must be started within three months of the contact date.