Scott Morrison to unveil $688 million HomeBuilder boost to kickstart residential construction
The federal government has announced $25,000 grants for those looking to build or renovate their home, in its latest plan to boost construction jobs. FIND OUT IF YOU’RE ELIGIBLE.
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Cash grants of $25,000 for Australians renovating their homes or building new ones will support the jobs of 140,000 tradies in an effort to reboot the struggling construction sector.
Prime Minister Scott Morrison’s $688 million HomeBuilder boost will be available from Thursday until the end of the year for individuals earning up to $125,000 and couples bringing in up to $200,000.
The grants will be available to those building homes worth up to $750,000, or undertaking major renovations worth between $150,000 and $750,000 on existing properties valued at less than $1.5 million.
The demand-driven program is expected to kickstart about 27,000 residential projects which will also support more than one million workers in the industry, including painters, plumbers, electricians, engineers and architects.
Mr Morrison said the government wanted “a tradie-led recovery to help spark the economy”.
“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,” he said.
To be eligible for a grant, homeowners must be renovating their house — such as an extension or major kitchen and bathroom works — instead of building a pool, tennis court, shed or garage.
The cash will be delivered through state revenue offices once building contracts are signed, with compliance also monitored by the states and territories.
Treasurer Josh Frydenberg said cushioning the coronavirus blow on the $100 billion industry was “vitally important”.
The industry has been crying out for a stimulus package, with new dwelling construction expected to fall by 20 per cent over the June quarter and 50 per cent by the end of the year.
“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,” Housing Minister Michael Sukkar said.
It comes as industry experts have flagged that there are currently only 2700 titled lots for sale for new housing across Melbourne and Geelong’s growth corridors.
RPM Real Estate director Luke Kelly said there had been about 640 land sales in April.
“If that number goes up to 1000 lots a month, that (titled supply) will be soaked up pretty quickly,” Mr Kelly said.
First-home buyers are expected to drive most of the demand in Victoria and would account for at least 60 per cent of those expected to buy a new home in housing estates this year.
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