The federal government's decision to stimulate the construction industry by gifting money to homeowners for renovations rather than build social housing has been described as a "gut-wrenching" wasted opportunity.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The federal government announced last week announced eligible homeowners could receive a $25,000 grants to undertake significant renovations or construct new homes in a bid to keep the industry working.
Under the HomeBuilder initiative owner-occupiers must spend $150,000 of their own money before receiving the additional funds.
The grants will be means-tested and limits placed on the value of the property the grants go towards.
Beyond Housing's Celia Adams said at a time where demand for housing and charity was high amid mass job losses, the government decision was at best concerning and at worst wrong.
"What the government has chosen to do is help those who can afford to buy or renovate at the expense of those who will never own a house, there just seems to be something wrong with that," she said.
"The government decision to give $688 million of cash grants for private home renovations and constructions is pretty gut-wrenching when we've got nearly 120,000 Australians with no home at all.
Ms Adams said with $688 million dollars on the line the federal government had the opportunity to address the existing housing crisis and to help people facing homelessness as a direct result of the pandemic.
"It's a huge missed opportunity that could have done something about reversing the 30 year decline in social housing," she said.
"In regional areas it could have led to economic stimulus through the use of local businesses and trades.
"I'm not saying homeowners shouldn't be assisted by the government but what I'm saying is what's the best use of the money in a recession? At a time like this where so many people are at risk of homelessness... is this the best way to use the money?"
The Victoria government have announced its own $2.7 billion construction-based stimulus scheme focused mainly on education infrastructure and public and housing.
Ms Adams said of the $50 million allocated to upgrade 23,000 public and community houses, at least a quarter is earmarked for regional areas which Beyond Housing hopes will help them upgrade some properties.