Master Builders Australia is calling for an extension of the Federal Government’s HomeBuilder grants scheme in its Pre-Budget Submission for the 6 October Federal Budget.
“We want to see the Federal Government extend what has been the most effective government stimulus measure in a decade for an additional 12 months,” Denita Wawn, CEO of Master Builders Australia said.
“Despite the undeniable success of HomeBuilder so far, we have downgraded our forecast for the housing sector by 25% for 2020/21 so that we are now predicting a 27% fall in homebuilding activity compared to 2019/20,” she said.
“This will be calamitous for many of the nearly 370,000 home building businesses that are vital to local economies and communities throughout Australia unless the Government steps in with extension of HomeBuilder and other stimulus measures,” Denita Wawn said.
“Our modelling shows that, based on the Government’s estimate that HomeBuilder Mark I will cost $680 million, that a one year extension, or HomeBuilder Mark II, will require an investment of $1.3 billion, return a boost to GDP of up to $4.5 billion, create more than 4,500 additional new jobs and result in the construction of more than 6,000 new homes in addition to those created in HomeBuilder Mark I,” she said.
“The Federal Government showed its commitment to builders and tradies when it announced HomeBuilder Mark I and they must be given credit for that. They should now double down to secure to further jobs by including HomeBuilder Mark II in the October Budget,” Denita Wawn said.