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New-home buyers could be given a $50,000 handout under a proposal by the Property Council of Australia.
It says the move would “kickstart construction for new housing, generate jobs and boost consumer confidence”.
Axing stamp duty and an immigration push are also among the measures being proposed in a seven-point plan to resuscitate the country’s ailing housing market.
The industry warns it’s a vital move, with construction halving and half a million jobs at risk.
Ken Morrison from the Property Council told 7NEWS that 900,000 Australians are currently employed in the construction sector.
“Some big and bold thinking is required to get the Australian economy going again after the impact of the COVID-19 pandemic,” he said.
“If this sector winds down, it’s bad for everybody.”
The Property Council’s plan
- Buyers of newly built homes would get a $50,000 ‘New Home Boost’ from the federal government;
- Broad-based tax reforms including the axing of state Stamp Duty taxes;
- The GST widened in the medium term to include fresh food, health, and education;
- And a “Welcome to Australia” immigration campaign to drive growth
The industry predicts another 400,000 jobs could go by years end, adding to the 100,000 already lost.
Graham Wolfe from Housing Industry Association says it’s a “very important” move.
“We are at a very, very critical stage right now,” he said.
Taxes and charges currently account for up to 50 per cent of a new home’s cost.
New home sales have also fallen 23 per cent since the lockdown began.
On top of that, a third of current projects have been cancelled.
The lead time for these types of constructions is six to nine months, which means home builders will likely face a harder climb back.
The Federal Government says it’s supporting the sector through Jobkeeper and wage subsidies and is monitoring developments.
For the council’s full proposal, click here.
Source: 7 News