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Dadto2

$25'000 stimulus package

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liveworkplay

The proposal is pretty outrageous because it involves giving public money to individuals so that they can increase the value of their own assets. There are 1001 ways to boost the construction industry, this just stinks of pork barrelling to me.

 

Isn't that what every stimulus payment is? This one is just more prescriptive on what that asset is.

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Kallie88
Posted (edited)

Not a proposal I'm a fan of in principal, but damn, if it was like 20k instead of 75k we might have taken it, we have renovations we'd love to do but can't afford yet, but they're not that big.Eta: I'm not surprised though, dh mentioned it coz i hadn't heard anything and we didn't know any details yet, just the idea, and i said to him then, as usual no money for the poor plebs that rent, and i bet the criteria will be such that they pay it to as few people as possible anyway

Edited by Kallie88

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ipsee

People with redraw on a mortgage and one main breadwinner would qualify. We are borderline, and could seriously use another bedroom so the teen can stop sharing.

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IamtheMumma

If you've got access to 75K, you're not low income.

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born.a.girl

If you've got access to 75K, you're not low income.

 

 

It's low to middle income, and that covers a huge range, particularly when it comes to differences in people's life stages, the age of their kids, whether both can work etc, when they bought.

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South Coast

It could benefit a lot of people in the industry - to do a large scale reno / build there is a huge amount involved, architects, designers, plumbers, electricians, local builders, cabinetmakers, plasterers, painters, list goes on. A standard large scale house reno could have around 100 people involved - there is also admin staff, accounts staff. Council involved too.

 

Need more information but done right it could support local businesses.

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raechel82

Doesn’t seem targeted to low income lol

 

I earn way less than that (aged care) and have put in a new kitchen but need a bathroom. My unit cost me $250k so yes unlikely to spend $100k on it.

 

Then again as a single childless woman I have never been eligible for anything. Invisible.

 

I think they should use the $ for social housing etc

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nom_de_plume

We were planning on renovating this year but are holding off because my work is insecure.

 

We're living in an almost 50 year old house and desperately need to redo the bathroom and kitchen. We were budgeting more like $60k for the renovations and probably have around $50k saved up.

 

We would ultimately like to build a carport and a second bathroom/ensuite but we just don't have the funds available for that and they're not a priority like the bathroom (tiles falling off the wall and damaging the shower base) and kitchen (no storage and some appliances need replacing) are.

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CallMeFeral

This pretty much sums it up for me. If you want to get construction going then bump up the social housing. There are huge lists for people trying to access it and no where near enough places. Some social housing is frankly appalling and should be condemned and rebuilt/renovated. It's public tax funded money, spend it on actual projects that provide support for people, not give it to individuals. Heck chuck it at some of the schools, our local high school has at least 2 blocks of buildings that need serious renovations and expansion. I know a lot of schools that are similar.

 

I do agree re those being the places that need (and deserve!) it more.

But I can see that by doing it this way they are only paying a quarter of the amount of the stimulus that is being pumped into the industry. Any of the above options they'd have to fund 100% rather than 25%.

That said, surely there are some sort of public/private partnerships they could set up in terms of social housing (although I kind of hate them - they always end up advantaging the private at the cost of the public) that would provide a similar return. Like tax incentives for building social housing or something.

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Dadto2

I think once you apply all the criteria, it just won't amount to a lot of people that qualify and/or that are interested:

 

- earn under $175k

- access to $75k

- one large renovation project required

- willing to spend $100k on project

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molinero

We were planning an $80-$120k ish reno in the next 2-3 years- the house is on a steep hill and we need to restump and plan to build a rumpus, extra bedroom, possibly a small bathroom underneath. We have been over-paying the mortgage to give us redraw money to fund this so probably could do the matching funds... but we’re not “shovel ready”, no plans or council approval or anything so I doubt we’d be good to go in time. Suppose it would depend on timelines?

 

MsLaurie you make a very good point. $100k worth of rennovations will trigger a DA in many places. Depending on where you are, that could take 4 months for council to approve. How long is this $25k scheme set to last for?

 

If you live in a heritage listed home, approvals could take even longer, again depending on the requirements of your local planning scheme and local council staffing.

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PuddingPlease

It could benefit a lot of people in the industry - to do a large scale reno / build there is a huge amount involved, architects, designers, plumbers, electricians, local builders, cabinetmakers, plasterers, painters, list goes on. A standard large scale house reno could have around 100 people involved - there is also admin staff, accounts staff. Council involved too.

 

Need more information but done right it could support local businesses.

 

Well yes but you can support any local business by paying it directly using government funds to provide a service.

 

If the government is going to be in the business of directly paying the wages of architects and tradesmen then I think that there are more equitable and reasonable ways to do so than paying for the private homes of people on six-figure incomes to be renovated.

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born.a.girl

I think once you apply all the criteria, it just won't amount to a lot of people that qualify and/or that are interested:

 

- earn under $175k

- access to $75k

- one large renovation project required

- willing to spend $100k on project

 

 

There are already people posting here who do.

 

It will depend on how much they've allocated to it. Haven't seen any comment on that yet.

 

 

Most families earn under $175k

 

Families who bought rock bottom basic many years ago aggressively saving for a reno or a larger house, may have access to $75k.

 

Just saw the logic for the larger project - they're not interested (understandably) in funding DIY projects - it needs to be big enough for tradies to be involved, which after all is the objective.

 

Not difficult to have a reno cost $100k without over-capitalising in many places.

 

 

Whether this is the best use of the money, I'm not sure, but I'm quite honestly surprised that anyone would think there aren't plenty of people who fit the category.

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Dadto2
Posted (edited)

There are already people posting here who do.

 

It will depend on how much they've allocated to it. Haven't seen any comment on that yet.

 

 

Most families earn under $175k

 

Families who bought rock bottom basic many years ago aggressively saving for a reno or a larger house, may have access to $75k.

 

Just saw the logic for the larger project - they're not interested (understandably) in funding DIY projects - it needs to be big enough for tradies to be involved, which after all is the objective.

 

Not difficult to have a reno cost $100k without over-capitalising in many places.

 

 

Whether this is the best use of the money, I'm not sure, but I'm quite honestly surprised that anyone would think there aren't plenty of people who fit the category.

 

Plenty of people who could spend $100k on renos, but it needs to be one single project, not renovating bathroom, kitchen etc If I'm understanding it correctly.

 

And yeah there are going to be people that fit the criteria, but is it going to be enough to stimulate the economy. I would imagine there are lots that fit 1 or 2 of those criteria, but all 4?

Edited by Dadto2

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ipsee

It will suit those who bought a cheap or small house in an old suburb awhile ago. So the equity in the house is high, and the house needs work or an extension. Half my suburb would fit the bill I’d think.(older suburb, old houses, gone up in value, now full of families with young kids).

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Ellie bean

I don’t like it because high earners who structure their tax and earnings to minimise declarable income, will benefit from this. Doesn’t surprise me from the Libs though.

So many better options for stimulus abound that I would prefer ideologically.

I don’t blame anyone who is eligible for claiming it though, heck I would if we needed renos and were eligible.

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ipsee
Posted (edited)

Around me people with little kids and one person working part time or on maternity leave will be the ones who qualify I think. They are also the ones who really need another bedroom on a small house on a big block.

Edited by ipsee
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Cimbom

 

 

Isn't that what every stimulus payment is? This one is just more prescriptive on what that asset is.

 

Not really. The current stimulus payments are so people can keep up with their rent or mortgage payments (and not lose their home), pay their bills, be able to eat etc. There’s a big gulf between that and paying for someone who is well off enough to have almost 100k cash lying around to build an extension or some other fancy renovations. It’s a bit rich from a government who was previously all about delivering a budget surplus and cutting public spending as much as possible to then around and give people money for a new kitchen. I think it’s in pretty poor taste especially at a time like this

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wanting3

I would rather it looked like the below

 

Each room would have an average cost per sq/mt

say a bathroom at $1000 per sq/mt

 

Family 1

4mt x 4mt room (16SQ)

builder gives the family the cheaper tiles and fittings and comes in at $16000. Goverment pay $25% in rebates (per the average above) so the family save $4000

 

Family 2

4mt x 4mt room (16SQ)

Builder give the family a more expensive tile and fittings and comes in at $25000. Goverment pay 25% in rebates (per the average above) so the family save $4000

 

This model could be used for different rooms in a house and make it fairer on all, it would still inject money into the construction industry, but instead of a large building company being the beneficiary (who would look to increase their prices to make the most of it) it could be spread out around more contractors in your local area.

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MadMarchMasterchef

What we need is a huge spend on social housing.

 

What better time to do it?

 

Given the jobkeeper funds were expected to be spent, we know the deficit can handle some more.

 

Also nursing homes, its my understanding there arent enough beds. And other health facilities.

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ipsee

News.com is now saying the income limit is 200,000 but that the house for renovation must not be worth more than 750,000.

 

Now I'm thinking less people will qualify. People with enough equity in their home loan to have the 75,000 to spend will find their house is worth more than 750,000.

 

It seems the final rules aren't available yet, but if 750,000 house value is the limit that rules out most of my city!

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born.a.girl

Plenty of people who could spend $100k on renos, but it needs to be one single project, not renovating bathroom, kitchen etc If I'm understanding it correctly.

 

And yeah there are going to be people that fit the criteria, but is it going to be enough to stimulate the economy. I would imagine there are lots that fit 1 or 2 of those criteria, but all 4?

 

 

Yes, I know it needs to be one project, but you can have a project made up of different components, and I'm not actually referring to the ones talking about kitchen and bathroom.

 

Well, I'm guessing they've done their figures, and know a bit more than we do about it.

 

Their record isn't great, but that doesn't mean every measure any government makes is bound to be deeply flawed.

 

 

We have just hit the first recession in 29 years. I think the age group of EB means that very few were affected significantly by the last one. GFC was a blip.

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jojonbeanie

I don’t like it because high earners who structure their tax and earnings to minimise declarable income, will benefit from this.

I'm sure there are some self emloyed tradies out there who have previously used every tax loophole in the book to minimise their declarable income and will now be happy to gain some work from this scheme.
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Behind Hazel Eyes

So this is a scheme to help low to middle income earners, being given $25'000 to be put towards big projects such as remodelling and home extensions. To qualify for the $25'000 you must earn under $175'000 per year, have $75'000 in cash that you are willing to contribute towards a minimum spend of $100'000 on renovations. I'm going to go out on a limb here and speculate the number of low to middle income earners, in Australia, that have $75k in cash that they are willing to spend on renovating their house is precisely 0. Am I missing something? It just sounds completely whack.

 

Does it specifically say savings? If the $75,000 cash can be gotten via a loan there might be more. People who were saving up to renovate might have cash.

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born.a.girl

I'm sure there are some self emloyed tradies out there who have previously used every tax loophole in the book to minimise their declarable income and will now be happy to gain some work from this scheme.

 

 

Funnily enough, since the advent of the GST, tradies have done even better with cash.

 

Back in the days before GST, they offered people cash savings, obviously because they had no intention of declaring the income.

 

Now, I've had them offer to 'knock off the gst' for cash, which means they're still not declaring the income, and pocketing all the tax they'd have paid.

 

That said, they get audited fairly readily, and it's not that easy to hide income unless people are skilled at auditing themselves.

 

When I had my business I had people doing funny things and sometimes admit it was to avoid declaring the income. To two of them, I said that they'd be picked up in five minutes if they had an audit. Cheeky beggars asked me how they could do it safely and I told them it was damned near impossible, not to mention the fact I wasn't going to enlighten them on how it's picked up.

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