Backing build boom

Canberra eyes home construction and renos to fuel recovery

NEW home construction and major renovation projects could be boosted through cash grants under a Federal Government virus recovery plan.

The ailing entertainment sector is also likely to receive stimulus, with the focus shifting from economy-wide packages to targeted assistance.

Some state governments including New South Wales are also looking at stamp duty reductions, a move that could slash the cost of buying a home and even downsizing for retirees.

Prime Minister Scott Morrison confirmed the Government was considering giving householders cash grants for home renovations.

“We are more interested in the larger projects and new home builds and things like that,” he told 2GB yesterday.

“We are looking at a bit of drop off in that current home building that’s going on. That’s not good for tradies and not good for jobs.”

The scheme is designed to expand the existing first home buyer schemes to encourage new home builds for families that have previously purchased a home and want to upgrade.

The Prime Minister said it would be important any construction industry measures helped local tradies rather than major contractors.

He also insisted that the scheme would be different to the projects the Rudd government rolled out during the global financial crisis that were criticised by the Coalition.

“This is not building school halls, we saw that done through big contractors and small contractors not getting the work. … We want to make sure the jobs get created locally.’’

Mr Morrison has also been in talks with key entertainment sector figures.

“One of the challenges is going to be that the entertainment sector will find it difficult to get capital moving again because they’ve had to draw down on it,” he said.