Renos industry boost
Government to unveil new stimulus package
CASH grants of about $20,000 will be up for grabs for Victorians undertaking renovations or building a new home under a Federal Government scheme to be announced tomorrow.
Prime Minister Scott Morrison said he hoped the plan — slated to cost taxpayers about $700 million — would spur a building bonanza and stave off construction industry collapse.
The cash injections will only be made available for projects predicted to cost about $100,000.
The high threshold would see small-scale works and DIY projects discluded, ensuring all builds required tradespeople to be employed.
Stringent means-testing will form part of the plan, as well as a Federal Government compliance program to ensure no one was rorting the system.
Existing infrastructure including the Government’s first home loan deposit scheme will be adapted to roll out funds, which people should be able to start applying for from announcement tomorrow.
The uncapped package — due to be finalised today — will be the fourth major COVID-19 stimulus announcement since the start of the pandemic.
While the construction industry is yet to suffer major impacts, experts predict a sharp drop off as the JobKeeper wage subsidy stops.
Home extensions, remodels and new structures were the kinds of projects that could receive funds.
News Corp understands states will be able to join the scheme and could announce further measures to further strengthen homeowner confidence in taking up the offer.
Treasurer Josh Frydenberg has been in conversations with state treasurers about their role in the scheme.
Chief executive of Urban Development Institute of Australia Danni Hunter has called on Premier Daniel Andrews to start cash grants, a deposit supplement scheme and tax exemptions for home buyers.
“The Federal Government’s package should give people the confidence to follow the Australian dream and become homeowners,” Ms Hunter said.
“But then it’s on our State Government to enable Australians to do that here.
“If the State Government doesn’t put a significant package on the table, we risk people moving interstate to take advantage of incentives offered by other jurisdictions.
“We need big incentives to give Victorians the confidence to buy a home right now.”
Social housing advocates have been calling on the Government to use the scheme to fund renovations of existing public housing facilities or to build new ones.
Community Housing Industry Association and National Shelter modelling predicted investment in a fouryear program to build 30,000 social homes would create 18,000 full-time jobs each year.
Federal Labor has also been calling for an investment in social housing for its economic and sociocultural benefit.
“It should not be forgotten as part of a comprehensive package which is needed,” leader Anthony Albanese said.