Federal Government comes to the rescue of home builders

Master Builders Australia believes that the Federal Government’s announcement of the HomeBuilder scheme today will be a massive relief to the 1000s of home builders and tradies around the country.

“HomeBuilder will be a lifeline for an industry facing a valley of death in the coming months. It will mean more new homes, more small businesses and jobs are protected and provide a stronger bridge to economic recovery for our country,” Denita Wawn, CEO of Master Builders Australia said.

“Based on the Government’s estimated 27,000 grants, we think the scheme will be used for $10 billion in building activity, supporting the viability of 368,000 small builders and tradies – the businesses which employ 800,000 people in communities around Australia,” she said.

“Supporting the home building industry is essential to strengthening the economy and helping Australia recover from the impacts of the pandemic. Residential building activity gives back more than double to the communities that sustain it with every $1 invested in home building activity providing $3 to the wider economy,” Denita Wawn said.

“This means that HomeBuilder will provide a boost for thousands of tradies; the cafes, pubs, and ute dealerships that they frequent; as well as the thousands of building supply businesses that depend on the industry,” she said.

“The scheme is well targeted and should maximise the number of builders, tradies, workers, apprentices and households that will benefit,” Denita Wawn said.

“The Government has listened to Master Builders call for HomeBuilder to include grants for both new home builds and renovations. EY modelling commissioned by Master Builders shows that this stimulus mix will deliver the best return on investment for taxpayers,” she said.

“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.” Denita Wawn said.

“The scheme is structured to get building activity going immediately and to provide safeguards around quality and consumer protection. Making HomeBuilder grants accessible through state and territory channels should streamline its rollout and building work must be carried out by a registered or licensed builder,” she said.

“The lag effect of building activity means that HomeBuilder comes just in time for builders and tradies staring out at a valley of death with forward work for the next 6 -12 months fast evaporating,” Denita Wawn said.

“The building industry is simply too important to the economy and living standards to allow to collapse. It is the nation’s second largest industry, provides the most full-time jobs, trains the most apprentices and is 98 per cent made up of small businesses. Master Builders welcomes the Government’s HomeBuilder scheme,” Denita Wawn said.