The construction industry should benefit from the extension of the JobKeeper program, according to market watchers.
Denita Wawn, CEO of Master Builders Australia, said building and construction is the industry where the most number of businesses are registered for JobKeeper – 98% of the industry is made up of small businesses.
"There is no doubt that JobKeeper continues to be a lifeline for thousands of small builders and tradespeople as well as many players in the construction supply chain. Always easier accessibility for independent traders to access the program is also important, "she said.
Wawn said this would complement the effects of the HomeBuilder program and other similar grants to keep the construction industry active.
"As the government acknowledges, the massive contraction in demand we are experiencing is due to restrictions on economic activity imposed to save lives, and therefore more effective stimulus such as HomeBuilder will be necessary to support the recovery, ”she said. .
Mitigating the economic blow
Peter Koulizos, President of the Property Investment Professionals of Australia, said expanding the JobKeeper program will help moderate the economic impacts of the COVID-19 outbreak.
"We have to accept that the economic impact of COVID19 will be significant. However, if the various stimulus initiatives and financial support plans had not been implemented, then the fallout would have been severe. ", he said.
Koulizos believes Australia may not be able to avoid a recession, but the stimulus packages will help the economy avoid risks in the long run.
"Essentially, these measures provide an economical airbag to help slow down and lessen the impact we all know is coming," he said.
Koulizos said the extension of the wage subsidy will also help the finances of many Australians affected by the outbreak. He said tightening JobKeeper's eligibility criteria would mean people who really need support will be targeted.
"The extension, as well as the continuation of mortgage repayment breaks, will benefit homeowners, landlords and tenants who will continue to need financial support over the next few months", a- he declared. "It also gives people time to breathe and prepare – rather than starting to panic about how to survive financially after September."
Changes to JobKeeper and JobSeeker
The federal government has announced that JobKeeper and JobSeeker will be extended beyond their expiration at the end of September. As part of these changes, JobKeeper payments and JobSeeker coronavirus supplements will be reduced.
Beginning September 28, JobKeeper payments will drop from a fixed amount of $ 1,500 per fortnight to $ 1,200 for full-time workers. For part-time workers, the payment will be reduced to $ 750 per fortnight.
Similar cuts will be leveled on the JobSeeker coronavirus supplement. JobSeeker beneficiaries who receive approximately $ 1,100 biweekly will receive $ 815 after September 28.
Treasurer Josh Frydenberg said the eligibility criteria will be tightened by the end of September to reassess which companies and organizations meet the revenue test.
"As the economy gradually improves, the Treasury expects the number of JobKeeper beneficiaries to drop significantly, with around 1.4 million people remaining eligible in the quarter. December 2020 and 1 million in the March 2021 quarter, ”he said.
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