The Hunter arm of the Housing Industry Association (HIA) has welcomed the Federal Government's 'HomeBuilder' package to give the housing industry a boost.
The $668 million package will see renovations on an existing home or at a new home valued at $150,000 or more eligible for a $25,000 grant.
There's other criteria as well like income, as a single you can be earning less than $125,000/year or for a couple $200,000/year.
Craig Jennion, the Executive Director - Hunter for the HIA said its all about jobs.
"Like all sectors its had some ups and downs over the last few months,"
"This is all about having people sign contracts by the end of the year and have jobs commence within three months and as a result we'll hopefully start to see some slabs poured in the second half of this year."
"If you're a builder fortunately you won't have to consider letting any staff go and as a homeowner it'll allow you to hopefully have some enthusiasm to work with the industry."
"Hopefully there'll be a whole diversity of trades involved. Unfortunately there will be winners and losers but the government has been very clear that its a very targeted project, it is time limited and our understanding is that it was their view it would help with the administration burden that comes with such a program"
"Unfortunately it will mean smaller projects are ineligible, but if you're able to put together a whole range of projects like the kitchen and the bathroom renovation all at once then you could look to receive a substantial stimulus from the Federal Government," said Craig Jennion.
HIA Managing Director, Graham Wolfe said the program will support tens of thousands of new home and renovation projects.
“The housing industry directly engages more than one million people – builders, trade contractors, designers, professional service providers and others. It provides jobs for many thousands more in the manufacturing and retail sectors, which supply the materials, products, white goods and furnishings that go into our homes,"
“This incentive will help to address the projected decline in housing activity over the next 12 months," said Graham Wolfe.
The HIA estimates the package could generate over $15 billion in national economic activity and importantly support hundreds of thousand of jobs.
HIA had predicted the supply of new houses could drop to as low as 111,000 in 2020/21, rather than the 171,000 original predicted in February this year.
“Stimulating home building activity has been an effective recovery catalyst in past economic shocks. HIA is confident it can again support the national economy through this difficult period."
“The HomeBuilder incentive is the largest direct contribution to owner occupier housing construction that an Australian government has ever made."
“Today’s announcement reflects the importance of the home building industry and the role the industry plays in generating jobs and economic activity."