The Australian Government has announced a $17.6 billion stimulus package to tackle the economic crisis as a result of the COVID-19 crisis.

As part of the package, the government aims to support around 120,000 apprentices and trainees in small businesses. Eligible employers can apply for a wage subsidy of 50% of the apprentices wage for up to nine months until 30 September 2020.

It’s a decision supported by HIA chief executive Kristin Brookfield: “As the Australian government looks to respond to the current global financial uncertainty and identify appropriate policies and stimulus measures to enact, the residential building industry should be one of the most supported.

“The residential building industry has a strong track record of underpinning Australia’s economic growth and stability.

“Australia is emerging from a residential building down turn and in the face of the coronavirus shock, stability and clear direction to ensure the housing market does not take a backwards step is essential.”

Master Builders Australia chief executive Denita Wawn also welcomes the government’s moves: “There are more than 380,000 small building businesses and tradies in our industry, more than any other sector of the economy, which will benefit from the Government’s strong focus on backing small businesses.

“Builders and tradies around the country will respond favourably to the huge boost in the instant tax write-off threshold from $30,000 to $150,000 and expansion of its eligibility to businesses with turnover under $500 million (up from $50 million).”

The decision is similar to a package following the global financial crisis (GFC) from the then Labor government: “Residential building stimulus was a key element in the response to the 2009 GFC and the results then were very positive,” Kristin says.

Denita mentions further steps that can be taken in response to the crisis: “The Government could also bring forward expenditure on existing projects. Accelerating construction of current projects and bringing forward construction of shovel ready projects, big and small, would provide an immediate strong impetus for building firms to take up tax write off and investment incentive measures.

“Our industry also remains nervous about how protracted the inevitable shortage and delayed delivery of imported building products will be. This is a hit to our industry that is looming over the next few months and additional measures and extensions of some of stimulus measures may be required to help the industry weather that storm.”