EDITORIAL
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Like any stimulus package, the federal government's latest cash splash will see plenty of money thrown around in a short period of time.
The whole idea is to stimulate the economy, which none of us will argue against given the battering it has copped due to the COVID-19 pandemic. However, as with any of these packages, there are strict eligibility criteria and many people will miss out.
Prime Minister Scott Morrison yesterday revealed details of his latest stimulus booster - a $670 million HomeBuilder scheme that will allow people who want to build a new home, or substantially renovate an existing one, to get their hands on a $25,000 grant.
The grants are for individuals who earn up to $125,000 or couples with a combined income of less than $200,000. They cannot be used to buy an existing house.
Mr Morrison said the "tradie-led recovery" would "help spark the economy".
"This investment isn't just about helping Australians bring their dream home to life, it's about creating jobs and helping support the more than one million workers in the sector including builders, painters, plumbers and electricians," he said.
While it's good news for workers and the many people out there who can't quite afford to build their home, those hoping to do smaller-scale renovations on existing homes will miss out. The value of new builds is capped at $750,000. For renovations, the home must be worth less than $1.5 million before the renovation, and projects must cost between $150,000 and $750,000.
Investment properties are ineligible. Swimming pools, outdoor spas, tennis courts, detached sheds and garages are also ruled out. Contracts must be signed before year's end and work must be contracted to start within three months of signing.
Some might say if you can afford a renovation worth at least $150,000 you probably don't need the assistance. Also, such a high minimum spend means many self-employed tradies who make their money from a lot of small projects, rather than large-scale builds, won't necessarily be any better off.
As with any government cash splash, it's important to read past the headlines.
Like they say, the devil is in the detail.
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