Housing and jobs in firing line for $1.8 billion cash injection

A massive cash injection from the State Government will guarantee plenty of work for tradies as it fast tracks much-needed housing and infrastructure in Tasmania. Find out how you will benefit >>

THE State Government will build a thousand new homes and the Federal Government will unleash a renovation bonanza as part of a spending blitz to restart the economy and boost jobs.

Premier Peter Gutwein will today announce $1.8 billion in ramped-up infrastructure spending over the next two years, with $100 million for social housing plus millions more for community infrastructure, roads, irrigation and other fast-tracked projects.

WHAT THE $25,000 RENOVATION HANDOUT MEANS FOR YOU

At the same time, Prime Minister Scott Morrison will unveil 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 nationwide.

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.

Mr Gutwein said “We have to build our way out of this and we will.”

Premier Peter Gutwein said the best way to get out of a recession is to build out of it, as he announced the $1.8 billion package. Picture: Chris Kidd

“The package will build on the Government’s current infrastructure package of $1.8 billion over the next two years, and in total will underpin and support an estimated construction value of $3.1 billion across the next two years.

“It brings forward government expenditure, it will stimulate investment in the private sector, it will strengthen and underpin the economy and it will create thousands of jobs.”

Prime Minister Scott Morrison will launch his HomeBuilder scheme with grants for big projects 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.

Prime Minister Scott Morrison will launch the HomeBuilder scheme which is designed to keep tradies in work for long periods of time. (AAP Image/Joel Carrett)

The seven-month scheme opens from today 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 five 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.”

BIG LOSERS IN SCOMO’S HOME RENO HANDOUT

Mr Morrison said the scheme, part of the JobMaker initiative, would spark a “tradie-led recovery” from coronavirus.

“This is about targeted taxpayer support for a limited time using existing systems to 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 only allow builders who were licenced before today’s announcement to prevent a raft of dodgy contractors setting up overnight to take advantage of the scheme.

“It opens up an opportunity for existing homeowners to make significant improvements,” Master Builders Tasmania chief executive Matthew Pollock said.

Executive director for Master Builders, Tasmania, Matthew Pollock said the value-add to homes in rural areas could include upgrading bushfire resilience. Picture: Zak Simmonds

“It could be adding an extra bedroom for a new addition to your family, it could be improving the liveability of your house through a more open-plan arrangement.

“For regional areas, it might be enough to support some bushfire resilience renovations.”

Seniors could potentially upgrade their home to make it more accessible with a lift or other measures.

Mr Pollock said the stimulus package would be “a huge job creator” for the industry, which had feared the pipeline of new construction jobs would dry up as families were financially hit by the coronavirus crisis.

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They expected the “cliff” to hit in September – the same time the $1500-a-fortnight JobKeeper payment is due to end.

The package is smaller than the $13 billion plan Master Builders Australia called for, which was tipped to create 14,000 new homes across Australia and 105,000 jobs.

Modelling showed the plan would save more than 1500 jobs and generate more than $210 million worth of construction activity.

“The renovations are something that could be done fast and don’t require a complex planning approvals process,” Mr Pollock said.

“This is money and work that we can get on the ground now, which means that we’re saving jobs as soon as this happens.”