A building and construction stimulus of $13.2 billion will stimulate more than $30 billion in new economic activity and create more than 100,000 jobs, according to a callout from Master Builders Australia.
"We are seeking stimulus not subsidies from the Government," says Denita Wawn, Master Builders CEO. "We want National Cabinet to urgently implement this independently-modelled stimulus package and establish a special task force to fast track commencement of construction activity."
Modelling published in Master Builders' 'Rebuilding Australia Volume Four: Stimulus Plan to Support Jobs and Boost GDP' shows that $13.2 billion from the government would mean $30.9 billion in GDP, 105,500 jobs across the economy and $17.6 billion in expanded construction activity.
While deemed an essential service and thus continuing to function throughout the COVID-19 lockdown period, building and construction has still taken an economic hit. What's more, says Wawn, "we know from previous downturns that it takes four times longer for our industry to recover than the rest of the economy. Work for builders and tradies in 2020/2021 is fast evaporating and the indications are that 2021/2022 will not be much better. There is no time to spare in meeting this threat."
Master Builders' callout is a stimulus package modelled by EY, comprising the following programs and forecasts:
A $40,000 uncapped new home building grant
- $17 billion in additional economic activity resulting from a $5.2 billion investment by government
- the creation of 58,311 jobs right across the economy, almost replenishing the 77,580 jobs lost in construction since the start of COVID-19, and
- the delivery of 14,000 extra new homes.
Resilience renovation program (funding for renovations to make homes resilient to natural disasters or to make homes more accessible)
- $7 billion in economic activity for $4 billion investment by government, and
- creation of 24,036 jobs.
For commercial programs (including funding for cladding/asbestos rectification, a 10 percent drop in developer charges, five percent increase in government spending in health, defence and education)
- $6.8 billion in economic activity for $4 billion investment by government; this excludes wider economic benefits in relation to health, safety and building quality, and
- creation of 23,118 jobs.