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Proposed Housing Stimulus Package to have a positive 'flow on' effect on the economy

Proposed Housing Stimulus Package to have a positive ‘flow on’ effect on the economy

Liberal Senator Zed Seselja says a proposed housing stimulus package would help to address “particular challenges” faced by the construction sector as a result of the coronavirus pandemic. The government’s expenditure review committee is considering a GST rebate on all new home builds in a move which could save households up to $50,000. The proposal is designed to revive the construction industry which is expected to contract in the second half of 2020 due to the coronavirus. Mr Seselja said the number of construction projects had decreased during the March quarter and projections indicated there could be a further downturn if the current deceleration in activity were not counteracted. “One of the reasons housing is particularly important is because it has such a flow on effect,” he told Sky News host Chris Kenny. There are approximately 1.2 million or so Australians employed in this area including the “chippy, the plumber, the roof tiler, the concreter, the painter, the carpet layer and so many others”. A stimulus package could allow the construction sector to remain viable until positive economic signs boost public “confidence” in the housing markets. Image: AP