House debates

Monday, 22 March 2021

Motions

HomeBuilder Program

12:07 pm

Photo of Garth HamiltonGarth Hamilton (Groom, Liberal National Party) Share this | Hansard source

In my electorate of Groom, the construction industry is one of the key building blocks of our local economy. From major national firms, like FKG and Hutchison Builders, to small mum-and-dad operations, Toowoomba region businesses deliver big at both the residential and the commercial levels. The sector employs nearly 7,000 people and generated $819 million in the last financial year, making it our region's third most valuable industry. And it's an industry that has not only survived but thrived during the challenges of COVID-19. Our local building boom has been supported by mass migration to the regions, with young people and families making the tree change to Toowoomba; and by this government's HomeBuilder scheme, which has seen 93,403 applications and over 14,578 grants paid nationwide since its launch.

The take-up of this program has turned around the fortunes of developments like the Avenues of Highfields, which sits in my electorate. Project director Stephen Bowers tells me he was feeling pretty sick about the COVID situation last February. Weren't we all. But, since HomeBuilder was announced, he's gone on to sell 220 lots, 50 per cent of those to first home buyers. They've now released the next stage of the development, four years ahead of schedule, showing that this truly is a market led recovery. The Toowoomba region has truly answered the Morrison government's call to renovate, extend and build.

The December ABS approvals data show that a remarkable turnaround took place in the last three months of 2020, with Darling Downs dwelling approvals skyrocketing by 121 per cent. The anecdotal evidence is that tradies are so flat out that there is a two-week waiting list for any of them. Local suppliers are now seeing shortages of some key materials, with sandstone blocks, crusher dust and most timber products in limited supply. This follows a national trend, with the Housing Industry Association's New home sales report for February showing that new home sales rose 60 per cent in the three months to February compared to the same three months in the previous year, while Master Builders Australia have revised up their projections for new dwelling starts for 2021 from 124,000 to 160,000. It is anticipated that 30,000 of those will be built in Queensland.

More of these homes will go to first-time buyers. The number of new loans to owner-occupier first home buyers was at its highest level in December 2020 since June 2009, during the GFC, when first home buyer grants were tripled. First home buyers now account for 42.5 per cent of new owner-occupier loans, which is above the 10-year average.

A division having been called in the House of Representatives—

Sitting suspended from 12:10 to 12:24

First home buyers now account for 42.5 per cent of new home occupier loans, above the 10-year average of around 30 per cent. The Morrison government is truly committed to helping more Australians get into a home of their own sooner. The First Home Loan Deposit Scheme is another mechanism we have leveraged. It was accessed by almost 20,000 first home buyers in 2020, with over 15,000 of those applications settled. An extension of this scheme supports the one million Australians engaged in the construction sector, at a time when the economy needs it most.

The huge demand for new homes in the Toowoomba region is also creating jobs for young people, with local construction firms expanding their teams. In my electorate, we've seen 846 apprentices registered through the Morrison government's $1.2 billion wage subsidy program. This program enables eligible businesses to be reimbursed up to 50 per cent of an apprentice's or trainee's wage, up to $7,000 per quarter. The announcement of the extension to this program received high praise in the Toowoomba Chronicle last week, with the headline reading: 'Toowoomba apprentices, trainers welcome extension to federal government's $1.2 billion subsidy scheme'. It's a great title for an article. In the article, the CEO of Downs Group Training, Kris McCue, was quoted as saying:

I think it will create a boost to apprentice numbers, we've already seen a big increase in numbers, and we see that continuing because it's promoting confidence in the sector.

Across the nation, it's estimated this demand-driven expansion will generate around 70,000 new apprentice and trainee places, building on the almost 40,000 businesses who've taken on a new Australian apprentice or trainee since the start of the Boosting Apprenticeship Commencements program. This is the evidence that local employers are feeling confident enough to expand their teams, growing the construction skills pipeline in our region that's so important for future projects like Inland Rail.

Looking at this big picture, it's easy to see that the HomeBuilder grants have been critical in supporting the Toowoomba region's residential construction sector through COVID, easing the strain on housing availability and helping build a strong base for our overall economic recovery. (Time expired)

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