The long-anticipated plan to boost the construction industry is finally underway, as the Federal Government will be handing out $25,000 grants to eligible homebuilders and renovators.
The ‘HomeBuilder’ scheme is aimed to keep the construction sector afloat by boosting the demand and thus providing jobs for builders.
Prime Minister Scott Morrison has encouraged people to use the opportunity and help the Australian economy to recover.
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.Prime Minister Scott Morrison
The grants are intended only for owner-occupiers to build inside their main residence. These limitations rule out the fund being used for investment properties or building any outdoor amenities, such as tennis courts or swimming pools.
In order to ensure the funding goes where it is most needed, the applicant’s annual income must be below $125,000, or for couple below $200,000.
New builds can cost a maximum of $750,000 and renovations between $150,000 and $750,000 to be eligible for the grant.
The COVID-19 crisis and the resulting economic downturn has already caused significant job losses on the construction sector, and the Government has been encouraged for weeks to do something about the situation.
Everybody knows this is needed. The coronavirus has punched a massive hole in the economy.Shadow Housing Minister Jason Clare
“We need to use that scheme, I think, to encourage people to build their first home, particularly at a time when we know that this industry is headed off a cliff,” said Clare.
The HomeBuilder scheme is anticipated to cost up to $688 million, which would mean about 27,500 applicants receiving the grant.