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What the new construction grant means for builders and other relevant trades…

  • Adroit Insurance and Risk
  • June 19, 2020

On the 4th June 2020, the Federal Government revealed a $680 Million HomeBuilder stimulus package that is designed to boost the construction industry.

The Statistics for April 2020 showed building approvals fall by 1.8% and by 2.6% in March 2020.  The prediction was that the home investments were expected to decline by over 20% in the June quarter.

The Government acted quickly to introduce this package as a way to safeguard the construction industry and retain jobs associated with the construction sector.

The Grant is aimed at supporting over 1Million trades such as builders, painters, plumbers and electricians throughout Australia.  Not only will it assist these trades, it will also extend to assist their suppliers and staff, as well as engineers, designers and architects.

Although the scheme is means tested and time limited (new building contracts must be entered into between June & December 2020, for new construction for principal place of residence or renovation to existing residences), it is still relevant to a large number of individuals, couples and families.

In terms of insurance, it is best to speak with your Adroit Risk Advisor to ensure you have adequate cover for major risks such as Public Liability, Professional Indemnity (if required), Tools of Trade, Contract works etc.  It is also a good opportunity to review your current policy coverage including Workers Compensation and Personal Protection (such as Life or Income Protection insurances) to avoid any gaps in cover.

Article written by Chantelle Bunning, Account Manager Adroit Insurance and Risk

Sources:

https://www.pm.gov.au/media/homebuilder-program-drive-economic-activity-across-residential-construction-sector%20

https://www.smh.com.au/politics/federal/new-homebuilder-package-aims-to-safeguard-jobs-of-a-million-tradies-20200603-p54z7w.html

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