The Federal Government has announced a tax-free grant program to assist the residential construction industry during the coronavirus pandemic.
Eligible owner-occupiers (including first home buyers) can apply for the $25,000 HomeBuilder grant to build a new home or renovate an existing one.
State and territory governments will need to sign the National Partnership Agreement with the Commonwealth Government before applications can start.
CEO of Master Builders Australia Denita Wawn says HomeBuilder will be a lifeline for a struggling industry in the coming months.
“Supporting the home building industry is essential to strengthening the economy and helping Australia recover from the impacts of the pandemic,” she says.
Wawn believes the scheme will provide a boost for thousands of trades around Australia.
“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,” she says.
“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.”
HomeBuilder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes.
Individuals must earn $125,000 or under per annum to be eligible, and couples under $200,000 (based on 2018–19 tax returns).
The grant scheme is expected to cost $680 million. Any building work must be carried out by a registered or licensed builder.
Wawn says that HomeBuilder has arrived just in time to save the second largest industry in Australia from collapsing.
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