Published 11:29 IST, June 4th 2020
Australian govt's new scheme to provide $25,000 to build or renovate houses
The Australian government announced that it would provide the eligible citizens with a grant of $25,000 to not only build a new home but also for renovation.
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The Australian government announced on June 4 that it would provide the eligible citizens with a grant of $25,000 to not only build a new home but also to renovate an existing. The new ‘Home Builder’ programme by Australian Prime Minister Scott Morrison government would provide a boost to nearly one million workers in the country and will reportedly cost at least $688 million. Moreover, the new move is not limited to only first home buyers.
Australian Treasurer Josh Frydenberg has noted that the housing sector is “critical” to the Australian economy and the Home Builder program would provide new jobs in construction that would, in turn, grow nation’s economy. The new policy would be functional from June 4 to December 31 this year and the applicants would be subject eligibility criteria that include separate income caps for both singles and couples. There is also a national dwelling cap of $750,000 that is applicable for new home builds and a cost of $150,000 up to $750,000 will apply to renovate a house with the current value of over $1.5 million.
The statement said, “The program is expected to provide around 27,000 grants at a total cost of around $680 million. This increase in residential construction will help to fill the gap in construction activity expected in the second half of 2020 due to the coronavirus pandemic.”
Program to provide 140,000 direct jobs
The Australian government will provide at least 140,000 direct jobs and 1,000,000 related jobs through the Home Builder program in the housing sector. The new move by Morrison’s administration would complement the already existing state and territory First Home Owner Grant programs stamp duty concessions among other grant schemes along with the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
“HomeBuilder will help to support the 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector including businesses and sole-trader builders, contractors, property developers, construction materials manufacturers, engineers, designers and architects.”, the statement read.
“HomeBuilder will create even more opportunities for first home buyers to enter the property market, as well as support other eligible Australians to build a new home or renovate an existing home,” it added.
Image Source: AP
11:29 IST, June 4th 2020