If ScoMo comes through - how will you spend it ?

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nuttylizardguy

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FINALLY something that will put the smile on many a home OWNERS dial ( especially us old farts who own our homes ( no mortgages ) .

A home owners scheme for home renovators to help keep building industry alive and afloat is a bloody good idea - wonder if it'll be modelled on the NT gov scheme ? or better even .


Federal government 'looking to hold up' construction industry amid COVID-19
Population Minister Alan Tudge says the government is investigating “what we can do to really hold up” the construction industry in Australia as the economic ramifications of the coronavirus pandemic continue to be felt. Mr Tudge said the government is “looking at seeing if we can stimulate the residential construction sector” within the nation. “The construction sector as a whole is, about 1.3 million jobs, it’s a massive part of the economy,” Mr Tudge told Sky News host Chris Kenny. << There are huge skill bases in it too , as well huge opportunities for training young people in a wide range of trades and professionals >>

On Sunday the government will introduce new homeowner grant to encourage the construction of new homes, with the Australian revealing today the program will be available for renovations.

Unfortunately our members are telling us that they are seeing a decline, pretty consistently around the country, of 40% drop in forward contracts that will start hitting us in September. << that will translate to perhaps 800,000 construction and construction reliant jobs ( ie at places like Mitre10, Bunnings, Blackwoods, Boral, Astral etc evaporating in the 3rd & 4th Quarter >>

The scheme will allow people buying newly constructed homes or renovating their existing home to access between five to ten thousand dollars.
The payment threshold is expected to be on homes worth $500,000 to $800,000.

The construction sector is expected to experience a significant slowdown, with demand constricting due to the COVID-19.
“The main-focus will still be on trying to get new houses constructed … (as) that obviously produces more jobs," Mr Tudge .
He said the federal government is investigating “what we can do to really hold up that industry”.
https://www.msn.com/en-au/news/australia/govt-stimulus-can-boost-construction-sector/ar-BB14ScGs?ocid=spartandhp

Scott Morrison flags coronavirus stimulus for builders, amid reports scheme will include cash grants for home renos
Forecasts suggest investment in residential housing will be down 20 per cent in the June quarter.
"House building, residential construction, is going to be one of those gaps we need to address," Mr Morrison said.

"We'll have more to say about this once the details are finalised, but it is about creating jobs and supporting jobs in our residential construction sector.

"The tradies and all the others, the apprentices and others who work in that home-building sector, are a sector we know are going to feel a lot of pain unless we can keep a continuity in the business with house construction."

The Australian newspaper has reported that direct cash grants for home renovations could be part of a multi-billion-dollar building stimulus package. << : ) >>

But the Government refused to confirm those details when asked by the ABC.
https://www.abc.net.au/news/2020-06-01/coronavirus-scott-morrison-stimulus-construction-entertainment/12306818

NT Scheme : https://businessnt.smartygrants.com.au/homeimprovement2020
It’s part of the Territory Government’s Rescue and Recovery plan in response to coronavirus (COVID-19).

The scheme will help fast-track around 5,000 screwdriver-ready projects in Territory homes.

This means that projects are physical improvements to land and / or buildings, and repairs and maintenance services.

The scheme operates on a voucher system, with home owners receiving either:
> a voucher worth $4,000 if they contribute at least $1,000 of their own money,
or
> a voucher worth $6,000 if they contribute at least $2,000 of their own money.

NTians grabbed it wholeheartedly and used it to put down concrete driveway, put up garages ,do decks , and install solar panels on their roofs. Lucky buggers.

If this happens , and I hope it does , and it's at least as good the scheme trialed in the NT , I'm very willing to give my builder ( who has my design for my 8m x 4.5m off ground steel frame , half covered ( roof over half the space ) hardiedeck clad deck moving as soon as I get the DA from the local council approved and the voucher from the Fed Government in the mail.
Heck I might even go all out and redesign it to be the full length of my house (so that makes it 18m x 4.5m ) with a split covered area ( north 1/4 and south 1/4 covered with insulated metal roofing or incorporate the observatory in my southern 1/4 so I don't even have to go down steps to get to it..

The money I'll likely save if this "grant" scheme happens I can use to build my roll off roof observatory as part of the "renovation/home improvement". I can get all this done while maintaining social distancing and voluntary social isolation ( the builders stay outside and have no need to come inside at all for my projects ). If it's a voucher worth $6,000 it's going be powerful incentive to me to pick up the phone and give my builder the go-ahead for my deck. If it's $10000 like the old new home owners scheme or $15000 , even better !!!

The deck project was ready for me give the nod in December.

I held off to focus on finishing off my beds and to have break , then covid19 came along and pause my remaining home improvements ( deck , solar panels , observatory ). Didn't want the bother.
Getting the deck done , especially if it's before Xmas will make my wife a very happy camper as she's wanted a nice out door entertainment area for a very long time .

I might call my installer to move my 8kW of solar panels project up for an install as soon as the deck is up and it's roofs are up too.
 
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-Adam-

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You say bloody good idea. I'm not as quick to jump high - even though I'm potentially one that would 'benefit' from this.

I see this as a positive and a negative. I'm concerned about the increasing debt that the country is getting into.

A positive in that a stimulus package to spend on local people to do something constructive (excuse the pun) - is a far better idea than a payout where people can go down to the local shop and buy the next large TV and send that cash over to China which happened with the previous stimulus package - so I think that's something.

A negative in that people have no idea what the true cost to all this really is. Each handout that we get is another rung removed from the ladder that our children will have to build and work their way up to. Our kids are not going to have access to the prosperous life that we have experienced - and each one of these handouts is a quick fix with a long term consequence.
 

nuttylizardguy

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Government to hand out $25k grants for housing construction, renovations to bolster industry
he Federal Government will give eligible Australians $25,000 to build or substantially renovate their homes, in an effort to boost demand in the construction sector and keep builders employed.

Government will give $25,000 grants to owner-occupiers for certain works on their homes.

But eligibility for the Government's program, which it has dubbed "HomeBuilder", will be restricted to substantial renovations and the construction of new homes, with recipients required to spend at least $150,000 before being eligible.

The grants will be means-tested to exclude couples making more than $200,000 per year and individuals making more than $125,000 per year, while limits will also be placed on the value of the property the grants go towards.

New builds will be capped at $750,000, while renovations can cost anywhere between $150,000 and $750,000, but will only be subsidised if the house being altered is valued at less than $1.5 million.

I can't see anyone but wealthy home owners who are looking at major extensions ( adding rooms or a second story ) to their homes being eligible . So it's a play for the traditional LIBERAL VOTERS and is really just another perk for them along with franking credit tax refund cheques despite many not actually income tax , and negative gearing and asset accelerated writeoffs.
https://www.msn.com/en-au/news/aust...ulate-the-economy/ar-BB14YinD?ocid=spartandhp
=========================================================
So this one gets a thumbsdown .
=========================================================
It's a scheme designed to ensure there are very few takers because the qualification hurdles are too high ( I can't see many people being willing to spend at least $150k just to qualify for a $25k grant on "renovations") , especially in a what looks like is the beginnings The Great Global Depression of 2020/21/22 .

Bummer !
So my back deck will definitely go no where near qualifying for this ( $150k is about 9x to 10x what I've been quoted supplies , built and ready to use , even if I go for best quality hardwood decking and timber handrails and balestrading ), and will have to wait a little while now I've got to fund it 100%.
It's not THAT important to us , it's just a want . I can afford it , but I'd rather wait a while now.

Idea : I've put to the Ministers ( NSW and Federal responsible )

Maybe a HOME RENOVATORS SCHEME FUNDED BY EACH OF THE STATES that targets the smaller nails , bricks , concrete , timber and solar improvements , renovations and additions will be called for when HOMEBUILDERS SCHEME fails to deliver any economic / construction / building industry support and the sector starts shedding chippies , brickies, concreters , roofers, kitchen installers , bathroom installers , sparkies and solar installers start getting retrenched and contractors are terminated emass in a few months as a result , pumping up those on JOBSEEKER by several hundred thousand

There is a ECONOMIC LAW which is readily predicts a two way job loss / gain multiplier , every person who looses their job results in 2 or 3 or more others following them soon afterwards , conversely every person who gains a new job or keeps their job , ensures the number of people will also follow suite .
https://kb.economicmodeling.com/what-is-a-multiplier/ even kids who take economics in years 11 and 12 know about this "law".

Realistically , if ScoMo was serious he'd be focusing on owner-builders and renovators of their owner occupied homes with the same means test but needing to put a minimum of perhaps $10k of their own money towards projects with a max value of $50k to get a grant of equal amount involving already established companies and contractors to do work , this will keep fly by night scammers out and should be focused on projects in or attached to home to renovate or improve the building ONLY .
This would help nearly every owner occupier and result in huge employment returns , almost immediately as FEWER DAs will be needed and lots of projects can be incorporated across the state ( not just in metro areas ) thus keeping locals working and supporting regional and rural areas too.



<< Added 4June
watching the news , 730 Report and The Drum , The Business tonight , I'm not the only one who thinks ScoMo has TOTALLY missed the mark and believes this scheme is doomed to failure and is targeting the wrong people as beneficiaries ( but who happen to be likely Lib voters ).>>


The grants could be provided via CENTRELINK or be paid ONLY on completion of the renovation - stopping grants being wasted on cars, boats, holidays, booze, gambling, or being stashed away in an account and not used as desired and would need a USE BY DATE ( 6 months say to allow enough time for the projects to be scoped, quoted, supplied, delivered and installed by licenced building/construction trades and completed and finalized ).


Delivering more bang per $ spent ( borrowed ) by the government .
[doublepost=1591197366,1591189778][/doublepost]Heck imagine the family economic benefits if each all electric home converted to solar + battery storage + paid feed up into to the grid , and how much money wont be be needed to build new coal or gas fired multimegawatt centralized power stations so soon to replace what is already aging / near end of life power generation capital in all states if even the poorest homeowners could suddenly afford to go solar with storage .
And the hard ship for these families (may who have now lost their jobs) can be alleviated ( lots have problems paying their power bills ).

Useful life of domestic solar panels is about 25 years for top quality panels , GelCel deep discharge storage can be good for up 15 years and is currently cheaper than LiIon storage but the price point on these will come down as millions of homes go solar and more are installed and the technology is becoming more durable and it's longevity is improving fast.

Perhaps part of the surplus power during days could be superannuated by the "Contracted Energy Provider taking the surplus supplied current via their grid " and be mandated to pay for serving home storage batteries , inverter controllers , and solar panels as they age and become less efficient or as more efficient replacements become commercially available.

The energy and transmission suppliers will find a jump the Power Factor and will likely need to make some grid and substantion upgrades to cope , still cheaper than establishing roads, rail, mines, water treatment , ash treatment / storage or value adding of ash , and then building a new powerstation and HTP substation and HT power lines and towers all associated with new multimegawatt gas or coal fired ( or oil fired or hydrogen fired , or even U fission powered or Th fission powered) power stations that are generally capital investments in the order $10B to $50B per pop and have a lag of up 10 years ( concept to commissioning).

Could even create three new indigenous ( as in on shore employing Aussies ) industries
> manufacture solar panels using aussie silica and doping compounds
> manufacture of domestic madee smart inverters
> manufacture of domestically made home battery deep discharge battery storage using Aussie Li salts.
and make Australia a manufacturer and exporter of these rather being an importer and price taker..

NOTE , we have some of largest reserves of lithium salts on earth and similar with silica. Australia needs to smarten up and convert from just mining and shipping stuff in bulk as minerals and ores , to value adding and making the end products to export at premium prices .
[doublepost=1591281293][/doublepost]
<< Added 4June
Let's see if NSW Premier ( in my case ) comes up with the goods and creates a NSW HOMERENOVATOR SCHEME that is going to cover SENSIBLE SIZED home improvements , I don't know too many even self funded retirees who even have a lazy $150k laying about that they would be prepared to throw into a home renovation or extension when it's likely they may not recover this if they need to downsize or sell up to move into a nursing home.

I do have several retired mates who are sitting on home improvements that will go between $10k and $50k and have these "in a holding pattern" , but are designed, got DAs, have quotes , but are at this time giving their "go ahead" not because they don't have the "cash" but because they have been and still are social distancing ( on doctors' advise for their own health and safety ) and because they don't want trades entering their homes at this time.
Others are putting their "bucketlist" trips on hold and might divert the money they would have spent on cruises, foreign travel and holiday, doing their usual GreyNomad thing or diverting the money they were planning on using to buy that campervan or big caravan or new boat on hold to do some home upgrades ( turn their home into the resort instead ) and might be interested if they don't have to spend $150k to do it.

Seems to me ScoMo and his ministers have totally lost touch with how most people who even vote for them live , they seem to only see their millionaire retiree buddies.

Good luck anyone being able to take a renovation or home extension from concept --> design / quote --> DA --> money borrowed form bank or building society ( most will have to borrow their $150k (minimum) ) & sign contract with builder / contractor --> start build all before ScoMo's HOMEBUILDER SCHEME is closed in December 2020 sometime.

Only ones smiling are some builders , some new home owners who were saving their deposits who have been given a leg up and millionaire self funded retirees ( who actually have ready access to the minimum required funds of $150k or more ( through short term IBDs or shares or dividends or their expected annual tax gift of fraking Credit Refunds from the ATD ) or access to a credit line to raise at least $150k for their home renovation / extension ).>>
 
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-Adam-

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First it's a bloody good idea. Now it's a play for liberal voters that gets a thumbs down?

Just like the Covid thread - it's a decent example of the society we live in, which would be better off it people stopped jumping to conclusions so quickly. Everyone's entitled to an opinion, and I will fight toe and nail to allow you to express yours through freedom of speech (interesting how some people are for freedom of speech and support others they disagree with, yet others are all for censorship, hmmm)... but back on topic I think that this is another good illustration that taking time to weigh up all the facts first (from multiple sources) before forming opinions on a matter is the more prudent move.

Personally - I'm relieved to see that there's a $150k minimum to start with. (This causes me to miss out now that I know this... but I'm still relieved).

I figure, instead of other people paying through their tax for the debt that a handout would cause - creating a $150k start ends up being more of a reduction in tax by those paying for the job and doing the work. ($15k would be paid in GST raised, which leaves $10k out of $150 (around 7%) remaining to be 'raised'. Considering that company income tax is around 30%, and the average wage earner would be paying more than 7% in tax - the government isn't really paying out any money that other people have to raise in this instance that needs to be paid back - but rather giving a bit of a tax break - whilst still having a bit of tax trickling in for income. (And that's worst case scenario. if the reno's are over that, it could be just a GST break and nothing else). That's far better than giving all home owners cash for nothing - that someone's going to have to pay for in the end.

Those wanting money for nothing and handouts that others have to pay for are the ones that are going to complain. I can see the huge debt that our children are already going to have to pay from the COVID knee jerk reaction - I'm glad that this isn't going to be adding a huge extra to it

As mentioned - I would have been applicable for renovations (we have some to do) - but they will be no where near $150k - so I'm missing out too. Even so - I can see the good in it, because I'm more concerned about the long term affects this has on our whole nation and what's best for our country's future - instead of what I can get for myself right now.
 
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