HomeBuilder: Is it a benefit or too good to be true for tradies?
“There’s quite a few conditions in there. Is it going to save the industry? ‘No’. Is it going to help? ‘Yes’. Is it going to be amazing? ‘Probably not for everyone’,” Andy says.
Will tradies benefit from the $688 million HomeBuilder scheme? That’s the question on the lips of tradies in business in Australia today, as we digest the details of the federal government’s latest plan to prop up the construction and trades sector. Is it a benefit or too good to be true?
For Australians wanting to build or renovate their own home, Prime Minister Scott Morrison said the HomeBuilder grants would “keep that dream alive”. But what about the dreams of trade business owners? Will the new stimulus package be enough to help tradies in the current climate?
Yes, HomeBuilder is positive news for tradies
Thankfully, as an “essential industry” tradies continued to work through lockdown in Australia. HomeBuilder is designed to save jobs by boosting the pipeline of work as we navigate through the second half of the year by encouraging new-home builds and renovations.
According to Andy Smith, fellow trade business owner and co-founder, Lifestyle Tradie, HomeBuilder is positive news for the construction and trades sector — an industry that employs more than one million people and has increased by 15.6 per cent over the past five years.
“The government is not offering the grants for fun. It’s concerned about the hit of the economic downturn on tradies and how it could take a toll on businesses and jobs. If any part of the industry takes a hit, we all feel the knock-on effect. That’s what HomeBuilder is addressing,” Andy says.
“There’s quite a few conditions in there. Is it going to save the industry? ‘No’. Is it going to help? ‘Yes’. Is it going to be amazing? ‘Not so’. “
No, it won’t be a repeat of the ‘pink batts’ scheme
HomeBuilder has attracted some criticism for being “too narrow” and the “the numbers don’t add up”. There has also been concern it would incentivise “cowboys” to rush into the market in the same way as they did during the controversial pink batts scheme back in 2009.
But the HomeBuilder handout of $25,000 is “nothing like that” says Andy.
“With HomeBuilder, you only qualify for the grant if you’re spending $150,000 or more on a renovation and you meet an income test. The government’s not giving out free money, you’ve got to spend money to receive it and go through an application process,” he says.
HomeBuilder is a demand-driven scheme, which is predicted to support 140,000 direct jobs and another one million related jobs.
Want to know more about HomeBuilder?
For all the latest information on HomeBuilder, visit: https://treasury.gov.au/coronavirus/homebuilder
- Want to know more about Lifestyle Tradie membership? Book a Game Plan Call with Andy to see if it’s a good fit for you.
- Download our free Survive the Sh*t Storm resources.
- Join our free Kick-Ass Tradies Facebook group to learn how to set team targets using your business’s break-even point.