Australian government announced to give $25000 grants to homeowners for building and renovating their homes. The step is taken to improve the downturn in the construction sector, to keep the labours and builders employed, and encourage the construction sector. The overall package would be of $688 million that needs to be spent on properties costing less than $1.5million.
After the CoronaVirus pandemic crisis, the economy of the country has been affected. It was predicted that the construction industry would face a financial downturn. After this scheme, government expects a consistent demand in construction.
According to Australian government, this scheme of home renovations grant will be able to offer 140,000 straight jobs. The number of related jobs in the construction sector would reach approximately 1 million. This step is considered as important in order to revitalize the economy and kickstart the construction field.
It is essential that the contractors must get into this scheme from now till end of the year. This is because the industry won’t have to face a big beat after this global crisis. They should start the work of renovations within three months after the contract. The scheme aims to get 30,000 homes built by the end of this year.
Key takeaways on home buyers grant 2020:
An eligibility criterion is followed to select the qualified homeowners. This includes:
- The suitable homeowners need to spend at least $150,000 on their own to avail the additional $25000 grant.
- More than 8000 Australians immediately applied for the grant when the scheme was introduced.
- Building owners and those with investment properties are not eligible. This scheme is only for homeowners.
- The expenses on new buildings should not exceed $750,000. The grant is subsidized when your renovation work needs to be done in between the price of $150,000 and $750,000.
- It is essential to hire registered builders for construction work. Those who want to renovate their home without the builders would not be considered as qualified.
- The licensed builders should necessarily be registered six months before the announcement date of this home renovations grant.
- For new home buyers grant 2020, it is essential to keep the principal of $750,000 as a joint value of land and house.
- The government grant will be provided only to the couples with an income up to $200,000 per year and individuals earning up to $125,000 per year.
Scott Morrison stated that the builders and workers, no matter if there is any crisis, always support the construction industry. So now is the time to pay them back and help them.
“When the investment in properties are seemed to decline by 20% till June 2020, Government grants scheme will be able to boost the jobs in the construction sector and improve the economy of this sector,” said Frydenberg.
For home renovations, it must be the work related to the safety and accessibility of the home, such as kitchen improvement. Those who need additions such as sunrooms, outdoor gardens, and swimming pool cannot be counted as qualified. The grant is paid to suitable people only when they submit their first payment.
In the words of Australian Housing Minister – Michael Sukkar, along with bricklayers, carpenters, electricians, and plumbers, this home builder scheme will also support workers in timber mills and workers who make tiles, glasses, and bricks for home construction.
Home renovations grant package will work along with other grant schemes. This includes the stamp duty concessions and first-home owner grant program for state and territory. It is predicted that this association will help to generate $15 billion in the economy of the country.
Even if a lot of people are in favour of this scheme, there are contradicting statements also coming up.
Kate Colvin said that when this plan is expected to get positive results. It lacks the opportunity to create long-term jobs in the construction industry. Moreover, she stated that this is an easy option which is provided to the homeowners who can actually afford a house; instead, we should support the people who need a house to create a turning point in the country’s economy.
Tanya Plibersek, labour MP, also stated that this plan would be a failure for those who need a house. According to her, this is the time to provide accommodations to those who are suffering from the crisis. Those who live in rental properties should be helped at this time. People who don’t have jobs are scared of being dropped out of the rental accommodations.
Homeowners with bigger construction investments are mainly benefitted. The real takeaways from this home renovation grant package are for the construction industry. The scheme encourages big projects to be undertaken thus acting as a spine to the construction employees.
What do you feel about this government grants package? Drop your thoughts in the comments box!
At last, it is worth saying that even if we are going hard in terms of finance, but the top of all, we should keep our safety at priority. Moreover, keeping the pace of the economy is also crucial. So, keep working in your respective field. But try to interact less with people, maintain social distance, and save humanity by starting it from yourself!