The Federal Government is considering cash grants for new homes to help stimulate the economy and support the building industry hit hard by the coronavirus.
Australian Bureau of Statistics data shows residential construction fell to $17.2 billion over the March quarter, which was the seventh consecutive quarterly fall.
Scott Morrison this week announced his government is working on a multibillion-dollar scheme to avoid a possible nightmare scenario once currents projects expire.
“It’s an issue that has been a key topic of discussion amongst the premiers and chief ministers and myself,” the Prime Minister said.
“If you’ve got a job in the residential construction industry, Michael Sukkar’s here, and Josh Frydenberg has been working on plans here.”
Master Builders Australia chief executive Denita Wawn said she proposes a new home grant of $40,000 that would possibly see around 130,000 homes built in the 2020-21 financial year.
“The industry is facing a valley of death,” she told Australian Financial Review.
“We are facing a decline in residential construction in 2021 of 30 per cent and a significant reduction in jobs.”
“There is no doubt there will be a drop in demand with lower migration and tourism, but we are not concerned about the long term.”
Property industry groups are calling for a $50,000 new home buyer incentive scheme from the Government.
Treasurer Frydenberg and Housing Minister Sukkar are working on housing construction plan that has also been discussed by national cabinet but nothing has been confirmed as yet.