The Premier outlines the WA government's $125 million building bonus package designed to support the housing construction sector's recovery from COVID-19, highlighting grants and incentives for homebuyers and builders.

AnsweredQoN 405Legislative Assembly
Asked
16 June 2020
Portfolio
Premier

QuestionView source ↗

CORONAVIRUS —
BUILDING BONUS
405. Mrs R.M.J. CLARKE to the Premier:
I refer to the work underway by the
McGowan Labor government to support the Western Australian economy and protect
local jobs through its $125 million building bonus package. Can the Premier
outline to the house how this package will support workers and businesses in Western
Australia's housing construction sector as it recovers from the
economic impacts of COVID-19?

AnswerView source ↗

I thank the member for Murray–Wellington
for the question. Obviously, the coronavirus has had a massive impact on the
building industry across Western Australia. That has meant, over the last few
months, that the normal rate of new contracts signed for houses has gone
through the floor. People have not had the confidence nor, indeed, even the
ability to go out and sign up contracts for new house builds. Display villages
were also closed over a large part of that period. We are the first state to
reopen display villages, but we know there was a long period during which very
few contracts were signed; therefore, the housing construction industry faced a
potential valley of death when the current builds ran out—a valley of
death of a number of months, so we had to take some decisive action.
On
Sunday a week ago we launched a $444 million housing package to ensure that
there is decisive action on getting jobs back and to ensure that our
industry will continue to sign up new contracts, continue to build, and,
indeed, support more than 3 400 jobs across
the sector. A key part of it is the $20 000 building bonus grant that we
announced on Sunday a week ago. That will ensure that any homebuyer will
be able to obtain a $20 000 grant when they build a new home. There is no cap
on the value of the property and there is no income test; it is just designed
to get activity, to get people out there working, and to get new contracts
signed.
It
builds on the commonwealth government's $25 000 HomeBuilder grant, and
if you are a first home buyer you can access the $10 000 first home owner grant
and the first home owner stamp duty concession. If you are a first home
builder, you get the better part of $70 000 of benefit towards a new home. That
is quite a significant benefit, and quite a big incentive to sign up. Obviously, you can access a loan through
Keystart—again, another big incentive to sign up.
We have seen huge interest in the
market. Builders whom I have spoken to over the course of the last week have said to me that buyers and people seeking to sign
up have been knocking their doors down to sign up for new builds . Dale Alcock reported a fivefold increase in
inquiries at display homes and there has been massive interest in building new homes since the joint commonwealth–state package was announced.
I quote Cath Hart from the Housing
Industry Association, who said —
This
package will position WA to recover more strongly than other states by
attracting more people to our remarkable state and generating jobs and
business activity.
John Gelavis from the Master
Builders Association said —
This particular stimulus package will
be a game changer for our industry.
It
will turbocharge the residential housing industry, saving many jobs and
creating jobs right across our sector. From bricklayers, roof carpenters, to
plumbers, electricians and apprentices that rely on our industry so much.
We are doing everything we can to
get activity and work back into our construction and homebuilding sector. On
top of that, we are putting in place once-in-a-generation reforms to planning
laws, to cut red tape and streamline planning processes. We had some
significant support for this yesterday. I wish to quote the Prime Minister of
Australia, Scott Morrison, who said yesterday —
The Government of Western Australia
already has bills before its Legislative Council to accelerate major projects, reduce red tape, and facilitate
bilateral arrangements to remove duplication between our assessment and
approval processes. My simple messages to pass the bill. It is good for jobs.
It provides a model, I believe, for other states and jurisdictions.
I thank the Prime Minister, Scott
Morrison.
Mrs L.M. Harvey interjected.
Mr M. McGOWAN : Pardon?
Pardon—what was that? An unusual interjection, Mr Speaker.
I
thank the Prime Minister, Scott Morrison, for his fulsome support for our
reforms. They are very good reforms, designed to get activity and work back
into the construction and building sector in Western Australia and cut through
unnecessary red tape. The Prime Minister sees this; I would urge members of the
state opposition to see it as well.

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