Victorian First Home Owner Grant will benefit contractors, says MEA

The Victorian Government’s plan to increase the First Home Owner Grant will have positive flow-on effects for small electrical contractors in Victoria, Master Electricians Australia (MEA) has said.

According to MEA Victoria state manager Carl Rankin, this increase will benefit not only first home buyers but will create a much-needed increase in home approval rates within the sector.

“According to the Australian Bureau of Statistics (ABS), home building approvals had fallen 9.9% in the past year, and the decline was flowing through to building industry subcontractors,” Rankin said.

“With the increase to the First Home Owner Grant and the combination of stamp duty cuts, Victorian families will now be thousands of dollars better off. This will generate a distinct boost in the sector where home approval rates increase and small contracting businesses get the work they desperately need.”

From 1 July, the grant will increase from $7000 to $10,000 for newly constructed homes. Due to the electrical industry’s substantial investment in the building and construction sector, electrical contracting businesses also stand to benefit greatly from the grant increase, Rankin said.

“The grant is targeted at newly built homes and while this would create jobs for all participants in the construction sector, a large part of the electrical contracting industry sits within it and would stand to benefit substantially from an increase in work,” said Rankin.

“MEA is pleased and relieved that the Victorian Government has heeded our advice and acknowledged that the floundering state of the construction industry greatly needed the assistance of an increase to the First Home Owner Grant. This is a step in the right direction toward more jobs for small businesses, as well as helping the building and construction industry in the state to grow.”