AUSTRALIA’S new $688m HomeBuilder package has been described as “hitting the jackpot” by some potential homeowners, but there are warnings that the initiative has failed low-income families.
The package offers a grant of $25,000 to build a new home worth less than $750,000 or to spend between $150,000 and $750,000 renovating an existing home.
The scheme is limited to owner-occupiers with reported incomes below $125,000 for singles and $200,000 for couples.
However, the St Vincent de Paul Society National Council has expressed disappointment that not one cent of the HomeBuilder package will go towards strengthening social housing – something the Society has been advocating for during the last four years.
“We’ve been going backwards on the social housing front for the last 15 to 20 years. No national government has demonstrated leadership,” the Society’s chief executive officer Toby oConnor said.
“Right now, there’s an estimated shortfall of at least 438,000 dwellings and that’s before the anticipated COVID-19 recession fully hits and unemployment peaks in the next few months.
“Investing in social housing would have delivered long-term good will beyond the pandemic.”
Several leading building industry analysts say the scheme’s primary goal is to supply work for the residential construction sector, with the Government expecting about 27,000 homeowners or builders to access the scheme.
That’s a relatively small number considering there are 7.7 million private dwellings across Australia.
Mr oConnor said the HomeBuilder package also failed low income home-owners because it was restricted to substantial renovations and requires recipients to spend at least $150,000.
The Society was concerned about the welfare of those who have been temporarily housed but were likely to end up back on the streets if nothing was done to address the affordable housing shortage.
‘We believe the Government can do better. It can boost economic activity in the building sector and address the chronic shortage of social housing at the same time,’ Mr oConnor said.
‘We and other social housing organisations have land available and have lined up building and maintenance projects that are ready to go.
“All we need is the funds. We know we can’t do this alone but, together, with governments, industry, the private sector and other charities, we can make this happen.”
The Society said housing was a human right and would like to see all governments agree to halving the rates of homelessness and housing shortfalls by 2025.
“Action was taken during the global financial crisis to build 20,000 new social housing units and renovate existing social housing,” Mr oConnor said.
“If we could do it then, we can do it now. We remain optimistic our leaders will do the right thing and commit funds to address the housing shortage.”
