The McGowan Labor Government has announced 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.
The State Government’s scheme is not means tested and has no cap on the property value.
The $20,000 grant builds on the Commonwealth Government’s announcement earlier this week to provide $25,000 for some owner-occupiers who build a new home.
This means those Western Australians who are eligible for the Commonwealth grant, could receive up to $45,000 for new residential builds.
First homebuyers will also be able to access the existing $10,000 First Home Owner Grant and first home buyer duty concession, meaning potentially up to a $69,440 benefit for Western Australian first homebuyers.
The McGowan Labor Government has also 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 State Government estimates that expanding the rebate scheme, which will also be in place until December 31, 2020 will cost around $8.2 million.
The $125 million Building Bonus package adds to the $319 million public housing package, also announced today, and takes the total committed by the State Government to COVID-19 stimulus and relief measures to $2.3 billion.
For more information, visit: https://www.wa.gov.au/government/announcements/state-governments-building-bonus-scheme
As stated by Premier Mark McGowan:
“This new WA jobs initiative will help drive economic activity in our local residential building industry, which is an important employer for thousands of Western Australians.
“It’s no surprise that COVID-19 has had an immediate and serious impact on confidence and activity in the residential building sector.
“My Government has worked with the industry on this Building Bonus to ensure our incentives will drive confidence, stimulate activity and keep thousands of Western Australians, including many tradies, in jobs.
“Together with the grants on offer from the Federal Government, Western Australians now have that extra added incentive to build a new home and turn their dream into a reality.”
As stated by Treasurer Ben Wyatt:
“The McGowan Government has led extensive conversations with industry groups to deliver this significant building bonus that will bring forward a substantial pipeline of work to boost the sector and support jobs.
“The $125 million package is just one measure that will assist with our COVID-19 economic recovery, securing Western Australian jobs and giving our economy a much needed boost.
“The grants are designed to give homebuyers confidence in the housing sector so we can build new homes, build up our economy and get Western Australians back on to worksites as soon as possible.”
As stated by Housing Minister Peter Tinley:
“Tens of thousands of Western Australians rely on the residential construction sector for work.
“Protecting and supporting those jobs during this very difficult stage in the State’s history is a responsibility that the McGowan Government takes very seriously.”
As stated by Federal Finance Minister Mathias Cormann:
“This Building Bonus package is a great complement to the Federal Government’s HomeBuilder program, which could see eligible West Australians get access to up to $45,000 in grants to support the building of a new home.
“Here in WA, eligible first home buyers could get access to a total of just under $70,000 in direct support.
“This is a great time to build, especially for first home buyers.
“Both the WA Building Bonus and the federal HomeBuilder programs are all about supporting jobs in the residential construction sector and will help fill the gap in construction activity expected in the second half of 2020 due to the COVID-19 pandemic.
“The Federal Government’s HomeBuilder program also applies to substantial renovations as well as new home builds and complements our First Home Loan Deposit Scheme and our First Home Super Saver Scheme, which give additional support to eligible first home buyers.”