The Morrison government is set to announce a $25,000 home renovation scheme for eligible Australians who earn less than $125,000.
The scheme, which is predicted to give victims of the bushfires first preference, has been noted to only last for months to try and avoid creating upward pressures on house prices.
While Mr Morrison has not officially stated how the stimulus package will work, he has told media that it is targeted at tradies to help small businesses restart after COVID-19.
Propertyology’s head of research Simon Pressley has supported the government’s fourth stimulus package.
“Rumours about a federal government stimulus package for the construction sector containing something for renovations could prove to be a master stroke,” Mr Pressley said.
Mr Pressley believes the quickest way to effectively boost the economy is through construction and confidence in the housing market.
“The biggest common denominator for 25 million Aussies is the roof over everyone’s head,” he said.
“Stimulating the renovation sector also means that the little guys and girls (local tradies) will get a lick of the ice cream, not just the big developers.”
He also praised the stimulus being targeted at existing dwellings over new ones due to the size and scalability.
“Normally, property sector stimulus is targeted at new dwellings – something Propertyology has never agreed with. A government policy [that] incorporates incentives for existing dwellings means that funding is reaching a much bigger critical mass. Australia has 10.3 million existing dwellings compared to building 0.2 million new dwellings each year,” Mr Pressley concluded.