Phillip Thompson (Herbert, Liberal National Party) Share this | Hansard source

I move:

That this House notes:

(1 )the construction industry:

(a) employs over 1 million Australians;

(b) consists of 390,000 small and family businesses; and

(c) generates more than $100 billion, or around five per cent of our annual economic output;

(2) the Government’s HomeBuilder grant has provided critical support to the residential construction sector during the COVID-19 pandemic; and

(3) that Treasury estimates that HomeBuilder is underpinning $18 billion worth of construction projects.

I'm very glad to move this motion today because the HomeBuilder program has been a massive success not just for the entire nation but also for the electorate that I represent in Herbert. At the beginning of this pandemic, roughly around this time last year when everything was shutting down, the construction industry faced one of the highest amounts of uncertainty. Not only did they not know whether their job sites would be able to remain open or operational but who was going to build the new home or complete a substantial renovation when their job was at risk. The industry, which employs over one million Australians, told us they were going to fall off the cliff if we didn't implement something extra, targeted support in addition to JobKeeper. So after consultation with the industry, HomeBuilder grant was put together.

In the first round, we saw $25,000 for new builds or major renovations. In Queensland, we had an extra $20,000 from the state government for first home builders. That meant a possible $45,000 for a first-time homebuilder in an unprecedented time, and it was an unprecedented level of support. For a lot of people it was that little bit of extra cash they needed to outlay for their dream of building their brand new home to get it over the line.

Now, coming up to a year on, the grant is underpinning $18 billion worth of construction projects. That's supporting thousands of existing jobs and creating thousands more. Let's not forget the bigger economic impact—along with the supply line that $18 billion directly translates into $60 billion of broader economic activity. We have nearly 90,000 applications nation-wide and more than 10,000 grants paid.

To give more of an idea of how much HomeBuilder has turned things around, new home sales have dropped to their lowest level on record in May 2020, according to the Housing Industry Association. That's how they have increased by 32½ per cent compared to 2019. In 2021, the HIA says it has recorded 130,000 new detached homes projected to start construction. Master Builders have revised projections up from 124,000 to 160,000 and 43 per cent of new home loans at the moment are projected to be for new home buyers. The way this project has transformed industry and saved it from the brink cannot be overstated.

Let me zoom in a little bit on Townsville and give you an idea of the boom we're experiencing locally in the electorate of Herbert. We've seen new home approvals in Townsville triple just recently—a massive increase. We saw them increase gradually from 40 in July to 82 in September to 104 in November, with all this leading to a good problem to have, and that's some supply chain issues and some workforce issues. The last thing I want to see is people not being eligible for the grant because work can't get started through no fault of their own. I've already said in this place that we need to make some practical decisions to ensure that no-one has to give up their dream build because the construction time lines in the rules don't allow it. It's a conversation that I've had with the Assistant Treasurer and something that I'll be continuing to advocate for, as severe weather pushes the six-month period from signing a contract to laying the first slab out a little bit.

Finally, I want to touch on the bigger impact of not just HomeBuilder but the broader suite of assistance that has been provided. Last month PVW Partners' Townsville Business Confidence Index showed that business confidence in Townsville was at its second highest in 30 years. The Townsville Bulletin quoted PVW Partners managing partner, Carl Valentine, as saying:

"Business confidence is at its highest in 14 years. The last time we saw results this positive was right before the Global Financial Crisis in 2007" …

As we come out of one of the most economically uncertain years in recent history, it's fantastic to see the Townsville business community gaining in confidence in such a big way. Mr Valentine cited JobKeeper, cash flow boosts and HomeBuilder as the government programs that have kept the Townsville business community alive. It's fantastic to see that local business confidence has skyrocketed and is the best it's been in 14 years, and HomeBuilder has played a big part in that.

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