COVID-19 has had a tremendous impact on Australian businesses, and the workers that the industries employ. While the construction industry persevered throughout the peak of COVID-19, contributing to keeping the economy running, the effects of the virus are now being felt within the industry. Building approvals fell 16.4% in May and are expected to decline further, predicting a 40% downturn by the end of the year. The industry is also experiencing impacts of travel restrictions, with demand from overseas migrants dropping to near zero.
To counteract the effects of this pandemic, the government has implemented the HomeBuilder Program – a scheme which offers eligible Australians $25 000 to put towards their renovation or new build project. The scheme is there to support the 140 000 direct jobs and another 1 000 000 related jobs in the residential construction sector, while also encouraging Australians to contribute to the industry and further restimulate the sector.
In the latest data from the HIA, the program is offering promising results, with new home sales rising by 77.6% in June from a record low result in May. “The rebound in New Home Sales in June does not fully offset the dismal results of the preceding three months and we are cautious of over interpreting data from a single month. It is a clear indication that HomeBuilder will help protect jobs in the sector in the second half of 2020 and into 2021,” commented HIA Chief Economist, Tim Reardon. While more data is needed before accurate conclusions can be drawn about the impact of HomeBuilder on employment, the government intervention has sparked optimism that the 40% downturn in construction that was anticipated will be significantly improved and will consequently support industry employment.
The scheme can be accessed by those who are completing renovation works between $150 000 and $750 000, or those building a new home valued up to $750 000. At Residential Engineering, our team has experience with every type of dwelling and can provide you with the information and advice you need to make your project a success. We provide a range of professional services including Structural Engineering, Geotechnical and Energy Services and Surveying. With our team of professionals behind every design, we strive to work with innovation and precision to provide the best for our clients.
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