In another effort to boost economic growth, the Australian government announced the $ 688 million HomeBuilder program on Thursday after the country’s first quarter GDP revealed the first contraction in three decades, cited by Domain.com
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Australians will receive $ 25,000 in grants to build a new home or undertake major renovations as part of a nearly $ 700 million federal housing project.
The plan will be reserved for middle-income people as well as new homes and major renovations valued between $ 150,000 and $ 750,000.
The temporary project, which will last until the end of the year, aims to build 30,000 homes by Christmas.
Treasurer Josh Frydenberg said the package was aimed at creating jobs and stimulating the economy.
“There is a real hole in the housing sector because of the coronavirus.”
“It is an extremely important sector for the economy as a whole; it contributes over $ 100 billion to GDP. “
“It also employs hundreds of thousands of people, including scintillants, plumbers and carpenters, people we want to get back to work, to deprive them of the income support they have gone through during the crisis.”
The Australian dollar is not happy with the new stimulus measures, as US-China tensions and the recovery in demand for US dollars have offset the optimistic Australian macroeconomic news.
The spot fell from 0.30% to 0.68896, at the time of writing.