'It's unfair': HomeBuilder scheme makes Australian permanent residents feel left out

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(R-L); Ashu Shukla, daughter Amya and wife Divya, are Australian permanent residents who had been waiting for a grant to start building their first house. Source: Supplied

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The federal government’s much awaited Covid-19 stimulus package to inject life into Australia’s limping construction industry has been announced. A grant of $25,000 will be given to qualifying citizens for the construction of new residential properties and renovation of existing ones.


Calling it the ‘HomeBuilder package,’ worth $680 million, Prime Minister Scott Morrison announced that the federal government will hand out $25,000 to those who wish to build a new house or renovate an old one between June 4 and December 31, 2020.


Highlights:

  • Federal government unveils HomeBuilder package, $25K grant for new homes and renovation
  • Enquiries from first home buyers have gone up, say real estate agents and builders
  • Permanent residents feel left out, allege grant only for the rich

Prime Minister Morrison also stated that HomeBuilder package will help keep the “jobs of builders and apprentices and tradies, all of those who depend on this critical industry across the country."

The HomeBuilder package announcement has been met with mixed reactions.

While some say this will help first home buyers realise their dream of buying a house, others believe this is aimed at pumping money into big construction businesses.

There's a widespread feeling amongst permanent residents that the federal government has tilted this deal in favour of Australian citizens.

Simran Khatrha, Director of real estate agency Biggin & Scott's Epping office in Melbourne, says this announcement has “sparked a lot of interest in a single day, mostly amongst first home buyers”.

However, he adds the HomeBuilder package has left many of his potential clients “disappointed” too.

“Many phone calls I answered, ended on a low note because often, first home buyers are permanent residents, especially migrants. This grant requires the beneficiary to be an Australian citizen. Many of my clients don’t qualify for it only for this reason” he says.

Ashu Shukla, an Australian permanent resident, says he was waiting for this announcement since one month, so that he could begin constructing his first home in Australia on the land that he had bought in April.

“HomeBuilder makes me feel left out. Why have permanent residents been discriminated against, when we are eligible for all other benefits like Medicare, Centrelink, JobKeeper etc as are citizens,” he asks.

Questioning the government’s rationale behind making this distinction, Mr Shukla views HomeBuilder as a “stimulus package for big builders and their rich customers”.

“If the federal government were serious about helping the entire construction industry, they would have let in permanent residents also, because that would have generated more business for tradies and tax for the government,” he comments.

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