DEVELOPMENT INDUSTRY READY TO REBUILD ECONOMY
After weeks of working closely with the McGowan Government on ways to rebuild the economy as a result of the devastating impacts of COVID-19, the Urban Development Institute of Australia WA (UDIA WA) congratulates the Premier, Treasurer and Minister for Housing on a carefully curated stimulus package to create jobs and contribute to a sustained economic recovery in WA.
Following on from a mixed reaction to the Federal Government’s Homebuilder Program, the McGowan Government has delivered a $125 million Building Bonus package to ramp up activity in the residential building sector, stimulate the economy and support around 2,600 local jobs.
The package includes $117 million for $20,000 Building Bonus grants and $8.2 million for the expansion of the 75 per cent off-the-plan transfer duty rebate scheme.
The Building Bonus grants are open from June 4, 2020 until December 31, 2020 to any homebuyer who wishes to build a new house or purchase a new property in a single-tier development (such as a townhouse) prior to completion of construction.
With a critical point of difference to the Federal program, the State Government’s scheme is not means tested and has no cap on the property value.
UDIA WA Chief Executive Officer, Tanya Steinbeck, said “the McGowan Government has acted decisively and precisely with this Building Bonus grant. They have demonstrated a detailed understanding of the mechanics of the market, and the grave situation the housing construction industry was facing in the coming months without government support.”
Importantly, in addition to the multiplier factor of jobs in housing construction, this stimulus package guarantees more jobs as civil construction works can now commence in earnest across the metropolitan area in order to provide a range of titled land lots for buyers to build their dream home.
“The land development industry provides the platform for buyers to choose the location that suits their needs, with the amenity they require to create a place to call home that is bespoke to their individual requirements,” Ms Steinbeck said.
“There are 5,000 land lots available across the metropolitan area over the coming months, combined with a diverse range of new home designs that provide the ultimate housing choice for those looking to take advantage of extraordinary economic circumstances,” said Ms Steinbeck.
In addition to house and land, the McGowan Government has listened to the feedback from industry and expanded the 75 per cent off-the-plan transfer duty rebate, capped at $25,000, to include purchases in multi-tiered developments already under construction in addition to pre-construction contracts.
“The next 12 months absolutely require government support to maintain and create jobs. The McGowan Government has been incredibly smart with the timing of this stimulus package, anticipating the pipeline drying up in a couple of months and proactively preventing what would otherwise have been potentially dire circumstances for the industry,” Ms Steinbeck said.
The $10,000 First Home Owner Grant and stamp duty concessions still apply, meaning some WA first homebuyers could qualify for up to a $69,440 benefit, a once in a lifetime opportunity for aspiring home owners to set themselves for the future.
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