17 April 2021

Doorstop interview, Berwick, Victoria

Note

Joint interview with
The Hon Michael Sukkar MP
Assistant Treasurer
Minister for Housing
Minister for Homelessness
Social and Community Housing

Topics: HomeBuilder program, HomeBuilder commencement extension.

JASON WOOD MP:

Hello everyone. My name is Jason and I’m the Federal Member for La Trobe. Welcome to the electorate of La Trobe. It’s absolutely fantastic to have the Treasurer here today, Josh Frydenberg and also the Assistant Treasurer, Michael Sukkar and he’s also the Minister for Housing. It’s great to also be with Brooke and Matt and so many people from the housing industry. 

La Trobe is probably the fastest growing electorate in the country. In actual fact four years ago I was at the school, Hillcrest, down the road and we were looking out the window there and there was no housing here at all so it is incredible how much housing has been developed over the last couple of years. Since June in the awful COVID-19 pandemic, locally we were able to keep the tradies in jobs, especially in the Pakenham area because of the HomeBuilder as well as JobSeeker and JobKeeper so this has just been so vital for my local area. To keep people in work and as you see today, the tradies are all here. I’ll hand it on to the Assistant Treasurer, Michael Sukkar. Thanks very much for being here today too.

ASSISTANT TREASURER, MICHAEL SUKKAR:

Well Jason, thanks for having us here at La Trobe and can I also acknowledge and thank Burbank for hosting us here at one of their new homes. It’s also wonderful to be with the Treasurer and representatives of the housing industry and Brooke and Matt who I will introduce in a moment. 

The HomeBuilder program was put in place in June last year after the pandemic hit when new home sales ground to an absolute halt. If you’re not selling new homes and you’re not building new homes that puts at risk jobs in the residential construction industry, an industry that employs a million Australians. Indeed, the MBA and HIA had fears, that they expressed to the Government, that hundreds of thousands of people in their industry would lose their jobs as a result of the COVID-19 pandemic. So we acted swiftly, the Treasurer acted swiftly, in putting in place the HomeBuilder program. A program now that is about five times bigger than expected. 120,000 projects, 80 per cent of those are new builds – just like the house behind me – and the other 20 per cent are substantial renovations. It’s led to $30 billion of direct economic activity. Activity that has, as Jason said, kept tradies in jobs, but happily for us has also meant that families like Brooke and Matt, who I’ll introduce in a moment, are able to get into, in some cases, their first home or their family home and it’s a wonderful thing. 

So today, another extension of the HomeBuilder program is that we are providing builders an additional twelve months, so 18 months from the date of signing the contract to the time that they need to start commencement in order to qualify for the HomeBuilder grant. Why have we had to do this? We’ve had to do this because the scheme has been so successful. Builders now are extraordinarily busy, there are issues with global supply chains, we’ve had natural disasters in some parts of the country that have also slowed down construction. What we want to ensure is that every single person, every one of those 121,000 applications who have signed a contract to purchase a new home, are able to get their grant with the confidence and the knowledge that those tight timeframes, which were very deliberately put in place, are not going to be an impediment. 

So I repeat, an extension, at the moment, a six month commencement timeframe now becomes an 18 month commencement timeframe. You’ll hear shortly from representatives of the building industry who we’ve worked with very closely throughout the HomeBuilder program and indeed throughout the pandemic, who now have the confidence that they need that every single one of those 121,000 applications will be eligible, subject to, of course, them commencing within 18 months. 

A great case study of why we need to make this extension, why this is really great news is an example of Brooke and Matt. Brooke and Matt have purchased a new home through Burbank and for a range of reasons which I’ll allow Brooke to explain, delays and other things, they had some anxiety about being able to access the grant given some of those tight timeframes. We’re really pleased that today’s announcement means that people just like Brooke and Matt can proceed with confidence knowing that they’ll get their HomeBuilder grant when their home finally starts. 

Brooke, you might like to come forward and maybe just quickly take everybody through your journey and the confidence that you’ve now got with the grant. 

BROOKE (NEW HOME BUYER):

The grant is extremely important to my family. We recently were only going to miss out by roughly five weeks and this extension means that we are 100 per cent confident that our family can achieve our dream home. This is going to be our forever home and that is a lot of money to us and we’re honestly very excited and relieved that our family can now have this grant. So for us it’s definitely great. 

MICHAEL SUKKAR:

As I said, we’ve worked very closely throughout the HomeBuilder program. It’s been phenomenally successful. There were a lot of detractors. The Labor Party said that it was too little, too late. The Leader of the Opposition said that it would fund pearl taps and gold baths. Clearly the Leader of the Opposition hasn’t been to housing estates like this. I don’t think that there are many gold baths here in this estate. The HomeBuilder grant is providing crucial support and in putting together the scheme and making this extension today, we’ve worked very closely with the industry. I want to thank all of the industry and I might just ask briefly, Denita Wawn from the MBA, Graham Wolfe from HIA and Ken Morrison from the Property Council, to just briefly say a couple of words from an industry perspective and then we’ll introduce the Treasurer. 

DENITA WAWN (CHIEF EXECUTIVE OFFICER, MASTER BUILDERS AUSTRALIA):

When HomeBuilder was devised, it was all about providing a safety net for the industry so that we didn’t lose jobs and that we could continue building through an economic crisis. Little did we know that we would get the number of applications that we’ve now got, 121,000 across the country, creating vital employment. That employment is not just focussed on the building and construction industry. Michael mentioned $30 billion worth of building activity but we also know that we’re an industry that has one of the largest multiplier effects which we’ve calculated at Master Builders to result in over $100 billion in economic activity. In fact we think that it’s nearly contributed to around about 5 per cent GDP increase for our economy which means jobs not just in our industry but for pubs, for cafes, for restaurants and all of that flow-on into the economy. 

In terms of today’s announcement around the extension, because of the overwhelming success of HomeBuilder, we’ve now got supply chain issues particularly with shortages of products and the fact that we’ve got so much work going on, that we’ve got delays in terms of accessing trades. The 18 month period from which we can get commencement date, eases that supply chain pressure, so we greatly appreciate it. No doubt there’ll be builders and clients, including Brooke and Matt, that will breathe a sigh of relief today with this announcement and we greatly appreciate the support of the Federal Government in doing so. Thank you. 

GRAHAM WOLFE (MANAGING DIRECTOR, HOUSING INDUSTRY ASSOCIATION):

By any measure, HomeBuilder has been exceptionally successful. It has delivered. It has delivered in the number of HomeBuilder grants but equally importantly, in the speed that it has helped the economic recovery across the country. By injecting confidence and stimulus in activity and engaging with industry, the builders, the tradies, the manufacturers and suppliers and the retailers out there across industries, it has engaged with those industries and allowed them to get on and employ people. By any measure it shows that stimulating housing activity during times of economic crisis makes sense. In the last twelve months, compared to last year, new home sales have increased by 43 per cent. Home loans have more than doubled. Building approvals for detached homes have reached record highs. Commencements in the quarter are at record highs equal to what we saw in March 2000. HomeBuilder has saved jobs, its reinstated jobs that were lost last year and it’s created even more jobs. The announcement of the extension today is great news, great news for home buyers who were concerned about the potential that they might have to forfeit their HomeBuilder grant – $25,000 or $15,000 – simply because building approvals were delayed, home loans were delayed, land supply might have been held up, wet weather might have got in the road, and supply chains globally might have slowed down the delivery. Now they can rest assured that they won’t be forfeiting their HomeBuilder grant and that industry can get on with the job. Thank you.

KEN MORRISON (CHIEF EXECUTIVE OFFICER, PROPERTY COUNCIL OF AUSTRALIA):

HomeBuilder has hit the economic bullseye. I can’t stress enough how important HomeBuilder has been to delivering from what was a dire situation in the middle of last year. The job losses that were feared to occur in the housing industry were diabolical. It needed action and it got action. I think that when the history of the pandemic is written, HomeBuilder will go down as one of the most successful federal stimulus measures ever introduced. So we thank the Government for that intervention, it has been amazingly important. It has literally kept hundreds of thousands of people in work right around Australia. The announcement today is a very sensible announcement. We don’t want to see people miss out on this benefit and we don’t want to see that economic benefit, that stimulus, that activity, artificially constrained. You want to see that run out through the economy particularly as we face other struggles. So we welcome today’s announcement of the extended time in which to take advantage of HomeBuilder. It’s a sensible decision, it comes off the back of very, very important decisions, not just for the housing industry but for employment right across Australia. 

TREASURER JOSH FRYDENBERG:

Well the last week has seen some very positive economic data. We’ve seen consumer confidence rise to its highest level in eleven years. We’ve seen business conditions get to their highest level on record and we saw the unemployment rate fall to 5.6 per cent with 70,700 new jobs being created, 80 per cent of those jobs going to women and about half those jobs going to young people. We were standing on the edge of the economic abyss last year. Treasury feared that unemployment could reach as high as 15 per cent, now it’s down to 5.6 per cent. We’re all familiar with programs like JobKeeper, JobSeeker, the $750 payments to pensioners, carers and others on income support, the cash flow boost. But right up there is HomeBuilder. HomeBuilder has been a game changer, creating jobs, jobs and more jobs. Homes are being built, dreams are being fulfilled. And we are here today to celebrate this very successful program and to ensure that those 121,000 applications see houses being built, renovations being made, jobs being saved and new jobs being created. This program will cost around $2.5 billion and as Michael said, it is significantly more than we first expected. But it is more because more people have required this support in order to fulfil their own dream and build their own home. So this extension in the commencement date for which the first slab can be laid is a very important step, it will help ensure a pipeline of economic activity, it will help ensure that the tradies onsite and those others that are employed across the supply chain continue to be in work. As Denita said, $30 billion in direct economic activity in the construction sector, but more than $100 billion of activity more broadly across the economy. It’s a great pleasure to be here with my colleague, Jason Wood, in his own electorate. He’s such a champion for not just families but also for small business and it’s fantastic to see jobs being created on his watch in his electorate. I also want to pay credit to Michael Sukkar because he put together this program and it has been a great success and it has defied those critics. But the Morrison Government’s economic plan is working. It’s a plan that we put in place at the height of this pandemic. It has meant that we’ve been with Australians at the start of this crisis, we are with Australians through this crisis and we will be with all Australians to the end of this crisis. 

JOURNALIST:

Treasurer, will you be accepting new applications for the scheme or is this just an extension of the commencement?

JOSH FRYDENBERG:

Applications have closed and as Michael was saying, there was a six month period in which you could lay that first slab. There have been some challenges with extreme weather events, getting materials through international supply chains and in fact getting a tradie because everyone is so busy now as a result of this program as well as other broader economic support measures. So, this is for those 121,000 applications that have already been made.

JOURNALIST:

Treasurer, this is the third change to the program. Was it too ambitious in its original form?

JOSH FRYDENBERG:

Well ambition has been good for this program because it has meant that more people have been kept in employment and this program has grown over time because more people have decided to use this grant to fulfil their own dreams. We’re really pleased with this program and the fact that it’s going to cost $2.5 billion is overshadowed by the fact that it’s going to create $30 billion of activity in the residential construction sector and a lot more activity across the economy. You have to remember that when we put this program in place, jobs were being lost across building site across the country and this has helped save those jobs. 

JOURNALIST:

The opposition has long argued that six months is not enough time. Why have you decided to extend it now?

JOSH FRYDENBERG:

We have spoken with the industry, we work closely with them. We heard that feedback. We have seen the impact that sticking to that six month timetable would have in terms of people being able to fulfil their contracts and too receive the $25,000 and so we've taken that decision now and this is going to come as a great relief to many Australian families.

MICHAEL SUKKAR:

I think it is fair to make this point. The Opposition did not, does not, support the HomeBuilder program. The Opposition opposed HomeBuilder. As I said, the Opposition said it was too little, too late. The Leader of the Opposition said it would fund pearl taps and gold baths. The Opposition sadly has been left wanting when it comes to the residential construction industry. It’s the Morrison Government which has stood with the one million workers in the residential construction industry and as the Treasurer right points out, not only supporting those million jobs but ensuring that people just like Brooke and Matt are getting into their first home or their family home and that’s just a wonderful and important by-product of this program. 

JOURNALIST:

Treasurer, Labor has also been pushing for this program to be extended for bushfire survivors who lost their homes and missed the application deadlines. Is that something that you would consider?

JOSH FRYDENBERG:

Well we have a series of support for those people who were in the bushfire effected areas but when it comes to this program, we set the parameters, it’s been in place since the middle of last year and has run out to the end of March. We extended it and tapered it and so it has been put in place and we’re not making further changes to it. 

JOURNALIST:

Any idea on how many more people will qualify for the scheme?

JOSH FRYDENBERG:

Well there’s 121,000 are the applications and that’s the number we have received. 

JOURNALIST:

Treasurer, Andrew Peacock, have you got any words to say about his passing?

JOSH FRYDENBERG:

Australia has lost one of its greats in Andrew Peacock. He combined great elegance, style, and substance and he left an indelible mark on the Australian political scene. Whether it was as Leader, Minister, or Member for Kooyong, a seat that he held for 28 years, he made a wonderful contribution to good government and to strong government in our country. He carried the baton of his predecessor in Kooyong, Sir Robert Menzies. There was no more popular, there was no more respected Victorian Liberal than Andrew Peacock. His passing will be mourned by those on both sides of the political aisle because he pursued his politics as he pursued life, with vigour, with dignity and with the upmost decency. I will be forever grateful to Andrew Peacock for the personal friendship and the support and counsel that he gave me. My thoughts and my prayers are with Penny and his extended family, including Annie who is with him and is going to miss him very greatly.

JOURNALIST:

How much of an honour is it for to you to have taken over his seat?

JOSH FRYDENBERG:

A great honour. He launched my first campaign back in 2010 and he a great sense of humour. Obviously combined that with great intellect and passion of the he was also one of my two referees for my preselection with John Howard and they hadn't always seen eye to eye and they came together and I was honoured by that. But John Howard, Scott Morrison, Tony Abbott, Malcolm Turnbull, former and current Prime Ministers have spoken very fondly of Andrew Peacock, his contribution to the Liberal Party, his contribution to Australia. He was a great Victorian. He was a great Australian and he will be greatly missed.

JOURNALIST:

On vaccines, the TGA is now saying that it believes the death of an Australian woman is linked to AstraZeneca. Are you concerned this will further affect confidence in rollout?

JOSH FRYDENBERG:

The TGA have put out a statement. Greg Hunt, the Health Minister will be standing up shortly and we will have more to say on that.

JOURNALIST:

In terms of JobKeeper, we know that Melbourne businesses are really struggling at the moment with getting back on their feet. A lot are closing up because they can't keep going. What's your message to them?

JOSH FRYDENBERG:

Well, JobKeeper was always a temporary program. It was emergency support. We extended it for an additional six months. We tapered it and we brought in a second rate, but it was always going to come to an end. Now, again our political opponents would like us to continue to spend on JobKeeper indefinitely. It was costing more than two billion dollars a month in the March quarter. But it was Treasury's firm advice that as the economy strengthened, emergency support programs like JobKeeper needed to come to an end otherwise it would have a counter-productive effect across the economy because it would prevent people moving more freely between jobs. But just as JobKeeper ends, the Morrison Government's economic support continues. We have business investment incentives like the tax cuts that are rolling out, like the targeted support for the aviation, the tourism, the arts sectors that we have already announced. All these programs are designed to boost economic activity and to ensure that we have more targeted support in the next phase of the transition, but if you look at the jobs numbers over the course of the last week, if you look at consumer confidence and business confidence, there is really reason for hope going forward because the Australian economy has outperformed all major advanced economies over the course of last year and more than 25 million Australians can be very proud of their contribution to that.

JOURNALIST:

Do you believe the Prime Minister will be judged on the vaccine rollout come election time?

JOSH FRYDENBERG:

The vaccine has already rolled to more than 1.3 million Australians. We have a challenge with supply and that is a function of factors that have been beyond our control, as you know, some supply not coming from Europe. But also, we’ve followed the medical advice with respect to the AstraZeneca vaccine. That’s why we provided that cautionary note to people under the age of 50. We’ve followed the medical advice, Fiona, from the start of this crisis and we’ll continue to follow that medical advice to the end of this crisis. But Australia is not in the same position as say the United States are or the United Kingdom are, where the virus has run rampant across their communities. Thousands of people, hundreds of thousands of people in the case of the United States, have lost their lives. Here in Australia we’ve been very successful in supressing that virus and we’re gathered here as we would be pre-COVID. I flew home yesterday from Canberra, the plane was full. You go to restaurants and cafes, people are going out again. I’ll be off to the football later tonight and I’m sure there’ll be a bumper crowd to see the Blues take on Port Adelaide. Right across the country restrictions are being eased. Yesterday we had a meeting of state and territory Treasurers. A number of those Treasurers are also leaders across the Northern Territory, across the ACT, Western Australia and Tasmania, and we discussed the impact of the virus and the restrictions in CBDs and they continue to do it tough, including here in Melbourne where commercial occupancy has been as low as 35 per cent. But as restrictions are eased, people will come back into the cities and that will see more jobs being created.

JOURNALIST:

Just from our Canberra bureau, what will the Budget have for skills investment?

JOSH FRYDENBERG:

Well again, you’ll have to tune in on budget night. I know everyone would love us to reveal the secrets here in Jason’s electorate of La Trobe but we’ll save some secrets for Budget night. But skills and workforce are priorities for the Government. We’ve already announced an extension of the 50 per cent wage subsidy for apprentices. That again has been a wonderfully successful program that has seen the tradies, seen other apprentices whether in the hospitality sector or the services sector be supported because apprentices have often been the last to join a business in employment and during a pandemic they can be the first to lose their jobs so we are very focused on ensuring that they have that degree of certainty and stability and that program has been very successful. Thank you.