The Federal Government is set to announce a multimillion dollar stimulus package for the residential building sector this week. The new package, which is expected to roll out from 1 July this year, proposes to offer cash grants towards home renovations.
The Federal Government’s rationale in introducing this targeted support is to minimise the impact of the COVID19 pandemic on the sector and to maintain employment along the supply chain by encouraging the build of more than 100,000 new homes.
While the eligibility criteria and the exact amounts of the grants are yet to be released, the grants for newly-constructed homes will reportedly be between $20,000 and $40,000. The grants are also expected to be available to existing home owners and first home buyers.
Prime Minister Scott Morrison flagged the stimulus package last week in light of recent lobbying from the Master Builders Association. The Master Builders Association have warned that 400,000 building companies and 1.2 million jobs were in jeopardy as a result of the slowdown in housing construction. The sector expects a 30% decline in construction in the next year due to the COVD-19 pandemic.
Federal Treasurer Josh Frydenberg has noted the importance of the stimulus package referencing the fact that residential investments constitute approximately $100 billion to the Australian economy which is around 5% of GDP and that over one million Australians were employed in the constructions sector.
Whilst this stimulus package is to be rolled out and funded by the Federal Government, State and Territory governments are expected to release complimentary stimulus packages to support the residential real estate and construction industry in their jurisdictions. The NSW State Government is considering phasing out stamp duty which could be partially funded by restructuring the current land tax position.
We will provide an update on the stimulus package upon its formal release.
Henry William Lawyers remain available to assist with any property related enquires. Feel free to contact the following Lawyers:
Ron Zucker +61 410 590 111
Vincent Tripodina +61 408 228 108
Chelsea Woodward +61 404 065 899