New homebuyers could be handed $20,000 or more in grants under a new government scheme

Photo by Fábio Hanashiro on Unsplash

  • Buyers of new homes could be given $20,000 or more under a new federal government scheme to be announced later this week.
  • Speaking to 2GB on Monday, Prime Minsiter Scott Morrison said the residential building sector was one of several being focused on under a tranche of new stimulus measures.
  • “Towards the end of this year, post about September, economists are telling us, [and] the states are telling us also, that we are looking at a bit of drop off in the current home building that is going on…that’s not good for tradies [and] not good for jobs,” he said.

The federal government is getting ready to put more cash into the hands of property buyers as it looks to a new set of stimulus measures.

Prime Minister Scott Morrison indicated his government is putting the final touches on a policy that would encourage residential construction by increasing demand for new homes.

“We’ve been looking closely at a range of sectors, we’ve been looking closely at the residential building sector,” Morrison told 2GB on Monday.

“We’re not making any announcements on that today but the Treasurer has been doing some good work with the states as well who are interested in working on those issues.”

According to the AFR, the government is preparing an announcement for later this week with grants of at least $20,000 on offer for purchases of new homes, to prevent projects simply dissipating during the COVID-19 crisis.

“We are more interested in larger projects and new home builds and things like that because you get towards the end of this year, post about September, economists are telling us, the states are telling us also we are looking at a bit of drop off in the current home building that is going on,” Morrison said.

“That’s not good for tradies [and] not good for jobs.”

The decline in the construction pipeline has long been a concern, with the RBA warning last year the consequent shortage could help drive prices higher.

The grant scheme, which could also be extended to cover some home renovations, appears to be the first of several new initiatives to be announced over the coming weeks from the federal and state governments to “get the economy moving”.

The Western Sydney Airport Line which will link Badgery’s Creek to St Mary will be expedited to begin work this year, with $1.75 billion of federal funding.

In total, the cost of the project is expected to double to $10 billion inclusive of road and rail work, according to Morrison on Monday.

“A big part of coming out of the COVID-19 crisis is our infrastructure spending… getting these big projects moving even more quickly is something we’ve been working together [on],” he said.

“We’ve gone from the big broad strokes of JobKeeper and JobSeeker but as time goes on we’ll be able to narrow it in and focus on those sectors which need longer-term support,” he added, noting the entertainment and film industries were two currently being on the table.

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