Federal Member for Lyne David Gillespie has described the government's one-off $25,000 HomeBuilder scheme as "a major shot-in-the-arm for the Hunter economy".
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Prime Minister Scott Morrison announced the $680 million HomeBuilder program which aims to help to stimulate work for trades and construction in the wake of COVID-19.
Under the program, property owners will be able to access a tax-free grant of $25,000 to help build or substantially renovate their home.
The sticking point for many would be that the home owner, in most cases, would be required to spend a minimum of $150,000 on the renovation to qualify, which would rule out a lot of people, especially those in rural areas where housing prices aren't as high.
"This will be a major shot-in-the-arm for the Hunter economy," Dr Gillespie said.
"HomeBuilder will help boost residential construction activity, directly supporting 140,000 tradies, and further one million jobs indirectly, in the residential construction sector across the region.
"This news will be welcomed by carpenters, plumbers, bricklayers and electricians on our building sites, and support the timber mill workers who produce the frames and trusses as well as the manufacturing workers who make the steel frames, glass, bricks, and tiles for our homes."
But Dr Gillespie points out that HomeBuilder will also support the jobs of sole-traders, building contractors, engineers, draftspeople and real estate agents.
"Like many of Australia's industries, our residential construction sector has not been immune from the COVID-19 crisis, however it faces a unique challenge," Dr Gillespie said.
"Ensuring there is a steady pipeline of work for the residential construction industry is vital to help it emerge strongly from the COVID-19 crisis."
HomeBuilder eligibility criteria includes:
- Income caps aligned to the First Home Loan Deposit Scheme ($125,000 for singles, $200,000 for couples)
- A new home build national price cap of $750,000,
- A renovation price range of a minimum of $150,000 up to $750,000 for an existing home valued under $1.5 million before works.
- Construction of a new home or substantial renovation must commence within three months of the contract date.
Today's announcement was warmly received by the Housing Industry Association (HIA).
"The HomeBuilder package will support the delivery of tens of thousands of new home and renovation projects," said HIA Managing Director, Graham Wolfe.
HIA estimates it could generate over $15 billion in national economic activity.
In recent weeks, Labor and the Greens have called on the Government to investing in social and public housing to bolster the construction industry - and Labor's Tanya Plibersek said the program missed an opportunity to help those most in need.
"We also need to use this opportunity to invest in emergency accommodation that can be a refuge for our most venerable people - mums and kids escaping domestic violence, veterans sleeping rough in parks, it shouldn't happen in Australia," she told the ABC.
HomeBuilder will operate until December 31.
