The Morrison Government is supporting jobs in the residential construction sector with the introduction of the new HomeBuilder program.
From today until 31 December 2020, HomeBuilder will provide all eligible owner-occupiers (not just first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. Construction must be contracted to commence within three months of the contract date.
The program is expected to provide around 27,000 grants at a total cost of around $680 million.
Member for Barker said this increase in residential construction will help to fill the gap in construction activity expected in the second half of 2020 due to the coronavirus 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 50 per cent 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,” Mr Pasin said.
HomeBuilder applicants will be subject to eligibility criteria, including income caps of $125,000 for singles and $200,000 for couples based on their latest assessable income. A national dwelling price cap of $750,000 will apply for new home builds, and a renovation price range of $150,000 up to $750,000 will apply to renovating an existing home with a current value of no more than $1.5 million.
HomeBuilder complements existing state and territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
This year, the Government delivered the First Home Loan Deposit Scheme to help eligible first home buyers to purchase their first home with a deposit of as little as 5 per cent, allowing them to get into the market sooner. HomeBuilder will create even more opportunities for first home buyers to enter the property market, as well as support other eligible Australians to build a new home or renovate an existing home.
The HomeBuilder program will be implemented via a National Partnership Agreement, signed by the Commonwealth and state and territory governments.
More information on HomeBuilder, including eligibility, can be found on the Treasury Coronavirus Economic Response website: https://treasury.gov.au/coronavirus/homebuilder