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Proposed stimulus measures to keep the construction industry viable

The construction industry has taken a major blow from the Coronavirus outbreak. With strict measures in place, it is almost impossible to continue operations as usual. 

It has become apparent that the Federal Government must provide a new and expansive stimulus package for construction workers to ensure industry viability in the future.  

About one in ten Australians are employed by the construction industry, and failure to provide an adequate stimulus package for construction industry workers will result in further falls in employment and greater potential for the collapse of the construction industry.

Master Builders Australia is urging the Government to streamline already budgeted works to provide better solutions to issues facing the construction industry.

 

Master Builders Australia Proposed Stimulus Measures

Some of the measures being urged by Master Builders Australia are outlined below.

 

Housing Measures

  • Rebound the risk of default and support the ongoing building of house and land packages through interest-free loans for a component of the cost.
  • Increase the first home-owner grants for a period of four months.
  • Increase the number of First Home Loan Deposits available and expand the eligibility criteria to incentivise new applicants.
  • Instant tax write-off/ extension of negative gearing for property investors to undertake renovations to rental properties.
  • Financial support for homeowners looking to renovate their homes that are pre-6-star requirements which enable better energy efficiency and/ or make homes more accessible for the elderly.
  • Contributions towards cladding rectification on apartments.
  • Fast track planning approvals.

 

Commercial and Civil Construction 

  • Bring forward spend on approved infrastructure projects but also bring forward milestone payments.
  • Focus on refurbishments or maintenance of new infrastructure projects.
  • Keep work packages small to increase the number of small to medium enterprises that can tender.
  • Contributions towards cladding rectification on commercial buildings.
  • Fast track planning approvals.
  • Bring forward spend on approved Transport infrastructure projects but also bring forward milestone payments.
  • Increase funding and expand eligibility for civil infrastructure development of housing estates.

These are just some of the measures Master Builders Australia suggests the Federal Government should take into consideration.

For the full list of Master Builders Australia Proposed Stimulus Measures, you can check out their website.

 

Keeping Construction Workers in Jobs

As mentioned, there is a significant chunk of the Australian population employed by the construction industry. 

With unemployment rates set to double by the June quarter, it is critical that the Federal Government act now to maintain the viability of the construction industry.

 

Stay Informed

Keep up to date with the latest impacts of Coronavirus on the construction industry and stay informed with the latest Coronavirus information from the Master Builders Association