Home renovation cash grants to be part of PM’s housing stimulus

Home renovation grants will be part of a multi-billion dollar plan to create tradie jobs and deliver new homes – but there is a catch to getting your hands on the cash.

HOME renovation cash grants will be part of a multi-billion dollar construction stimulus package designed to save tens of thousands of tradie jobs.

Prime Minister Scott Morrison is poised to unveil the plan as early as this week.

It will be the first in a series of ‘JobMaker’ stimulus packages for different sectors, and is aimed at ramping up economic activity before September to prevent a ‘cliff’ when the $1500-a-fortnight JobKeeper payment ends.

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It’s understood the cash grants will be for sizeable home renovations only, not DIY jobs.

Grants are also expected to be made available to people who want to build a new home in the next 12 months.

The Master Builders Association have recommended the grants be targeted at renovations to make homes more resilient to natural disasters as part of their pitch for a $13 billion construction sector stimulus package.

The plan would create up to 436 Tasmanian jobs, modelling by Ernst & Young shows.

New home grants worth $40,000 would also generate up to 1124 construction sector jobs for Tassie, the analysis found.

At least $9 billion worth of stimulus measures, funded 50-50 by the federal and state governments, was needed to drive new construction demand and prevent a ‘cliff’ in September, Master Builders chief executive Denita Wawn said.

Master Builders Association CEO Denita Wawn. Picture: RICHARD JUPE

“We’re not looking for the full $9 billion just from the Federal Government, but at least $4-$5 billion and for that to be matched by the state governments,” she said.

The investment could generate $24 billion worth of economic activity, 14,000 extra new homes and about 82,300 jobs across the country, EY’s analysis shows.

Property Council of Tasmania boss Brian Wightman welcomed any efforts to improve housing supply across the state but also called on the state government to consider stamp duty changes.

Property Council of Tasmania, Executive Director, Brian Wightman. Picture: MATT THOMPSON

“Relief from stamp duty on specific builds via remission or deferral, or by raising the first home builders grant would further stimulate the sector,” he said.

Welfare and housing groups are urging the federal government to direct the cash to building social and affordable housing as coronavirus exacerbates Tasmania’s housing crisis.

TasCOSS acting chief executive Simone Zell said a focused program of upgrading and maintenance for public housing properties would also provide stimulus and a social benefit.

Shelter Tas chief executive Pattie Chugg said: “Let’s build the type of homes that will flatten the curve on homelessness too.”

Larger projects and new home builds were the government’s priority, Mr Morrison said yesterday.

“We want to make sure that whatever we do in this space ... we want to make sure that jobs get created locally,” he told 2GB radio.