HomeBuilder $25,000 Cash for Home Renovations and New Home Building

Daniel Fowler
June 4, 2020

Prime Minister Scott Morrison says this will drive a "tradie-led recovery" of the economy.

Predictably dubbed "HomeBuilder", in line with the Morrison government's naming convention, the package is aimed at subsidising home builds and renovations around the country to the tune of $680 million.

The contract must be entered into between June 4, 2020 and December 31, 2020 and the work must be started within three months of the contract date.

Australians pledging to build a new home or renovate their own are set to receive a $25,000 cash injection, as part of the government's fourth stimulus package unveiled after the nation recorded a 0.3 per cent drop in GDP in the March quarter.

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.

The money can only be applied to new homes valued up to $750,000 including land, or renovations already valued between $150,000 and $750,000 that will result in the property being worth under $1.5 million.

Only individuals earning up to $125,000, or couples earning a combined salary of $200,000, will be eligible.

Treasurer Josh Frydenberg predicted the scheme would support 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector.

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The high minimum threshold is meant to stop dodgy contractors in a "pink batts" style scandal, by requiring the scale of the works to require licenced builders, who have held their licence from before today.

The money will not be allowed to go towards swimming pools, tennis courts, outdoor spas and saunas, sheds or garages.

"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 one million workers in the sector including builders, painters, plumbers and electricians across the country".

"The eligibility criteria mean that the vast majority of Australians will be able to access the scheme; more than 80 per cent of households have income of $200,000 or less", he said.

The construction sector is being given a big shot in the arm, as the federal government seeks to spark an economic recovery.

"These new stimulus measures will provide potential buyers with that extra incentive they might need to jump in and secure a new home", she said.

Details are yet to be announced, but the policy is already making waves.

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