New HomeBuilder package has just been released.

Scott Morrison today announced a huge $700 million cash splash to get Aussies spending again in housing and construction.

What’s that? Free money?

Almost.

Bar a few conditions, Australians – both singles and couples – will be handed up to $25,000 tax-free towards building and renovating homes.

The “HomeBuilder” housing stimulus is aimed at kicking things off quick smart, with grants only available from next month to December 1.

So who can get it?

It’s going to apply to millions of Aussies, with really the only condition being how much you earn.

As a single, you can’t earn more than $125,000, and if you’re investing with a beau, your combined income can’t exceed $200,000.

It’s also not for your property investor.

So owner-builders or someone seeking to renovate a home as an investment property are ineligible. You also can’t do the work yourself and have to employ registered or licensed building service contractors to do the build or reno.

What can I build?

This also has conditions, many of which are to ensure you’re getting as many high-vis tradies involved as possible.

So you can’t spend the cash on overly cosmetic things, like a pool or spa or sauna (yes, the Government had to tell Australians not to invest in a sauna. Go figure.)

You also can’t put the $25,000 towards a house worth a couple million.

No, this will only apply to builds from $150,000 up to $750,000, including land.

Why the boos for the construction industry?

There’s obviously a lot of sectors doing it tough, but the Government is particularly worried about predictions of the residential housing pipeline drying up by the end of the year.

The industry employs more than one million people, from builders to designers, so it’s no small thing for the sector to start collapsing. 

From this stimulus package alone, estimates are that more than $15 billion in economic activity could be generated nationally.
Mr Morrison said the package would “support those families and those Australians whose dream was to build a home do that big renovation”. 

“This keeps the dream alive for jobs, apprentices, tradies and all those that depend on this critical industry across the country,” he said.

Reception from the industry

So far, the peak bodies are welcoming the news.

The Housing Industry Australia said such incentives were critical to keep the industry going.

“Most importantly this incentive will support hundreds of thousands of jobs across Australia,” it said in a statement

“The housing industry directly engages more than one million people – builders, trade contractors, designers, professional service providers and others. It provides jobs for many thousands more in the manufacturing and retail sectors, which supply the materials, products, white goods and furnishings that go into our homes.”

A “missed opportunity” to invest in social housing

Labor wasn’t too chuffed the announcement pretty much left the vulreneble out in the cold – literally.

Tanya Plibersek said while Labor supported extra investment, those who were struggling to be housed at all were not being taken care of.

“The missed opportunity in the housing package is in social housing,” she said.

“It is great to help people buy or renovate their home but when we were last in Government in the global financial crisis, we built 126,000 new public housing homes, we upgraded about 70,000.

“We started about 80 homelessness programs. We have thousands being turned away every night in Australia from crisis accommodation, mums and kids fleeing violence, veterans sleeping in our parks.

“It shouldn’t happen in a country like Australia and now is the ideal time to be building accommodation for those people.”

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