NEW home builders and property owners looking to undertake large-scale renovations could be eligible for cash grants up to $25,000 through the Federal Government’s latest stimulus package, announced on Thursday.
The $688m HomeBuilder scheme aims to support the nation’s critical building and construction sector, which underpins hundreds of jobs across the Limestone Coast.
Under the scheme, all eligible owner-occupiers can apply for funds to either build a new home or substantially renovate an existing home.
It is a big coup for mew first home buyers in South Australia who could receive up to $40,000 if they are also eligible for the existing $15,000 State Government incentive.
Speaking from the Mountview Estate development on the city’s southern outskirts, Blue Lake Homes general manager Jacinta Jones said it was a welcome announcement amid a tough period for the construction sector.
“The effects of COVID-19 were felt quite quick, certainly in terms of confidence because building a new home is quite a large investment for people,” Ms Jones said.
“That confidence is starting to creep back in, but it’s still not where it was pre-COVID-19, which is why this is such a great thing for people’s affordability to be able to get onto the property market in any way or form.”
Ms Jones believed the new package would be the tipping point for people thinking about building a new home.
“I think it will have a huge impact on the industry and in-turn it will benefit all the businesses and trades locally as well,” she said.
“There have been rumours about this announcement for a while and it’s great to now have the answers for people and help those people make decisions to get into the market.”
Joining Ms Jones on Thursday’s site visit, Member for Barker Tony Pasin said the scheme would help to fill the gap in construction activity expected in the second half of 2020 due to the corona-virus pandemic.
“HomeBuilder will help to support the 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector, including businesses and sole-trader builders, contractors, property developers, construction materials manufacturers, engineers, designers, architects and of course our timber and forestry industry,” Mr Pasin said.
“To use the timber industry as one example, AFPA has been forecasting that sawn timber demand could drop by up to 50pc by year end, putting many of the 45,000 jobs in the softwood timber supply chain at risk, as well as having a devastating impact on timber communities.
“This package will help prevent this decline and weather the storm for the whole supply chain.”
Praising the Federal Government’s announcement, South Australian Treasurer Rob Lucas said the State Government was finalising another package of new measures – in addition to the $1b in economic stimulus it has already committed.
“This is a huge shot in the arm for the local construction industry and the tens of thousands of tradies it employs in South Australia, as we recover from the greatest economic challenge of our time,” Mr Lucas said “We will not be adding to the grants or abolishing stamp duty, however in the next week or so, we will announce a package of further measures to help stimulate the housing and construction industry.”
Property Investment Professionals of Australia chairman Peter Koulizos said the HomeBuilder scheme was a welcome shot-in-the-arm for the construction section.
“The restricted timeframe of the scheme as well as the requirement for projects to begin within three months of the contract date will also help to prevent profiteering from unscrupulous operators,” Mr Koulizos said.
“Like with any property investment decision, though, it is vital that homebuyers complete thorough research and seek expert individual advice before buying a new home because it is a significant financial decision that will last much longer than the $25,000 grant.”
However, the Australian Council of Social Service described the package as a wasted opportunity to address the backlog of urgent social housing repairs and the shortfall in social housing stock.
“There is no argument the construction sector needs a shot in the arm, but this money will not go where it is most needed,” ACOSS chief executive Dr Cassandra Goldie said.
“It will largely benefit those on middle and higher incomes undertaking costly renovations, without any related social or environmental benefits,” she said.
“We should be focusing on ensuring everyone has a roof over head, not on government support for people who are relatively well off to upgrade their roofs.
“There is also dire need for repairs and renovations of existing social housing dwellings that workers could get started on next week.
“We could create even more jobs by installing solar and improving energy efficiency in low-income homes, which would cut energy bills for people and families, who will otherwise freeze through winter.”
The HomeBuilder scheme will run until December 31, 2020.
