Federal Government Homebuilder Grant
On Thursday June 4th, the federal Government announced the HomeBuilder scheme which will attempt to increase new building and renovation projects between now and the end of the year.
The federal Government will give eligible Australians $25,000 to build or significantly renovate their homes in an effort to boost the construction industry as well as its supporting industries. The aim is that this will support the 140,000 direct jobs plus 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 and architects. The Government estimates the scheme will fund about 27,520 projects (at $25,000 each), so approx. $688 million going into the sector. As Prime Minister Scott Morrison emphasises, "This investment isn't just about helping Australians bring their dream home to life, it's about creating jobs and helping support the more than 1 million workers in the sector including builders, painters, plumbers and electricians across the country."
The scheme does come with some restrictions, which is aimed at focusing the benefits in specific areas. We have outlined these below:
As well as the above, this scheme does not apply to investment properties or owners that intend on building or renovating their own properties without the help of builders.
Also, all eligible builders need to be licensed or registered before the government’s announcement, to reduce the opportunity for unskilled people to take advantage of the scheme.
Renovation work will also be limited, with structures separate to the main house being exempt, such as tennis courts and swimming pools.
Prime Minister Scott Morrison said the purpose of the scheme is to create jobs at an uncertain time for the industry.
"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.
"If you’ve been putting off that renovation or new build, the extra $25,000 we're putting on the table, along with record-low interest rates, means now's the time to get started."
We will be sure to keep you updated on this and all other matters relating to our business, during this challenging period.