Singles who earned no more than $ 125,000 in the previous fiscal year and couples who earned up to $ 200,000 will be eligible for grants.
The document will be available from June 4 to September 31 and construction must begin within three months of the date of the contract.
This is a short-term targeted program so developers cannot capitalize the subsidy into their price.
– Michael Sukkar, Assistant Treasurer
Policy designer and deputy treasurer Michael Sukkar said the program was designed in a way that it didn’t explode home costs or renovations, which has happened with previous aid programs.
He said the industry consultation convinced the government that with the current pipeline of investments set to dry up in September, “prices are very competitive due to the slowdown initially expected, coupled with the expected lack of demand.” .
âThis is a short-term targeted program so that developers cannot capitalize the subsidy in their price,â he said.
“As HomeBuilder can only be used to build new or largely renovated properties, its eligibility criteria manages the risk of long-term affordability issues by increasing supply.”
Before the coronavirus pandemic crushed the economy, new home construction was expected to be 171,000. That fell to 111,000.
The system aims to fill a deficit of 30,000 new constructions in the second half of 2020.
Labor and Greens have called for a construction program to help the economy recover, but demanded a broad program to ensure the construction of social housing.
National accounts, which showed the March quarter contracted 0.3%, indicated that investment in new and used housing fell 2.9% in the quarter and 15.5% in the quarter. during the year, reflecting the continued weakness in housing approvals.
Houses (-1.4%) and other residential dwellings (-5.2%) contributed to the decline this quarter.
Treasurer Josh Frydenberg also announced on Wednesday potential major changes to the $ 70 billion JobKeeper program, which provides flat rate wage subsidies of $ 1,500 per fortnight.
Mr Frydenberg said the budget update was delayed by a month so it could take into account changes to JobKeeper, which could include removing the fixed salary of $ 1,500 so that people who earned less than before the crisis are not overpaid.
He also suggested that companies whose turnover has recovered may not be eligible for payment during the envisaged six months.
âWhat we want to do is understand where businesses are in the recovery phase. We want to know if the amount – that $ 1,500 payment – continues to be the right amount.
âAlso bearing in mind that some people get paid more than they would otherwise be due to a lump sum payment.
“But, in the context of an economy where restrictions are relaxed and people are returning to work, we need to assessâ¦ the continuation of this JobKeeper program in this context.”