The Federal Budget will boost confidence in the building and construction sector, protect the viability of thousands of building and construction businesses and save the jobs of the more than one million people that they employ, according to Master Builders Australia. Source: Timberbiz
The organisation’s CEO Denita Wawn said that making building and construction the keystone of COVID recovery is the right call by the Government.
The Budget has also been welcomed by the Housing Industry Association with Managing Director Graham Wolfe saying it has given both first home buyers and more than one million workers in the residential building industry the incentive and confidence needed to continue to navigate through these challenging times.
“The measures announced will deliver a pipeline of building work and most importantly help more people access a home of their own,” Mr Wolfe said today.
Ms Wawn said the Budget would support the building industry as the accelerator of economic recovery.
“It is going to support the country to build its way out of recession,” she said.
“Productivity enhancing infrastructure, including local community infrastructure, wage subsidies and massive tax incentives for builders and tradies to invest means the Government is putting in place the right foundation for recovery.
“Hundreds of thousands of small building and construction businesses will now have hope that they can stay afloat,” she said.
“The extension of the First Home Loan Deposit scheme and the $1 billion for the construction of new affordable housing will extend the opportunity to own a home to thousands more people for whom it seemed out of reach.”
Ms Wawn said it would also unlock even more investment and further activate residential building as the “engine of economic growth and employment”.
Mr Wolfe said an increase in the number of people that can apply for a place in the First Home Loan Deposit Scheme, if they buy or build a new home, and the $1.2 billion injection into the Supporting Apprentices and Trainees wage subsidy were major cornerstones in supporting jobs across the residential building industry.
By increasing the number of people eligible for the First Home Loan Deposit Scheme by 10,000, focusing on new home builds, and raising the price thresholds, the Government had opened the door to a larger group of first homebuyers.
“Research by JWS Research in 2018 clearly showed that home ownership is one of the top three issues Australians care most about. Improving home ownership rates with sensible and targeted measures can make a real difference for first home buyers and help deliver on the nation’s economic recovery from our current COVID recession,” Mr Wolfe said.
“From a workforce and skilled trades perspective, the extension to the Supporting Apprentices and Trainees (SAT) wage subsidy to cover 50 per cent of an apprentice or trainee wage, up to $7,000 a quarter, provides a great incentive for businesses to take on a new apprentice right now.”
Mr Wolfe said the $2.8 billion initial SAT Scheme had already proven to be successful during 2020, supporting the majority of aspirational tradies as they navigated their apprenticeships during the year.
“As we approach the end of 2020 and school leavers consider their future career and education options, the SAT extension provides a real opportunity to secure an apprenticeship in residential building industry, and a rewarding career for life,” he said.
“The Government is listening to industry. Combined with the confidence-boosting business investment incentives, these measures will go a good way to helping Australians during these unprecedented times to secure a job and achieve their dream of home ownership,” Mr Wolfe said.
