The federal government is considering giving householders cash grants for home renovations, under a multi-billion dollar stimulus package to boost the economy.
Prime Minister Scott Morrison will likely announce a fourth cash splash aimed at saving the jobs of 1.2million tradesmen later this week, The Australian reports.
It comes after the COVID-19 pandemic crippled the housing construction industry and cost an estimated 60,000 builders their jobs.
Construction of new homes plummeted throughout the crisis along with most other economic activity - and authorities fear it will be slow to revive.
The $4billion cash grant scheme would encourage homeowners to make changes to their properties and provide tradesmen with immediate work.
But there would be limits on the type of renovations that could be undertaken under the plan.
Homeowners could soon be given cash to renovate their homes under a new government stimulus package to stave off a coronavirus-induced construction industry collapse. Pictured: Home renovators Josh Barker and Elyse Knowles
Construction of new homes has plummeted during the coronavirus pandemic along with most other economic activity and is feared to be slow to revive. Pictured is a new build house at Toongabbie in Sydney's west
Master Builders Australia chief executive Denita Wawn said the proposed package would save small businesses from a potential catastrophe.
She said the addition of renovations in the scheme - which also plans to broaden the first home buyers allowance - bypasses 'the red tape' of requesting planning approvals.
Ms Wawn agreed certain criteria should be met for property renovations, including making homes more resilient to natural disasters like fires and floods.
Home owners should also be able to use the grant money to rectify cladding and asbestos concerns, Ms Wawn suggested.
Economic modelling commissioned by the business determined the stimulus could generate upwards of 105,500 jobs in the wake of the crisis.
Treasurer Josh Frydenberg is expected to confirm the details of the scheme, which will also include a clause to help pay deposits for building new homes, Sky News claimed on Sunday.
Home auctions and inspections have only just been allowed for the first time in more than two months and are still subject to many restrictions.
More than a million people have also lost their jobs, taken pay cuts, or fear they could be next, and are in no position to take out a mountain of debt.
Homebuyers may be handed thousands of dollars to build houses as the government desperately tries to stave off a construction collapse that would cost many jobs
Despite already spending well over $300 billion on coronavirus stimulus packages, the Federal Government is tipped to splash more cash to tackle this.
Grants of up to $10,000 have at various times been offered by the states, but only to first homebuyers struggling to own their first property.
The government's plan is instead believed to be across the board - helping anyone constructing a new home.
As Australia's population grows it needs more housing supply to avoid running out, so