How will the COVID stimulus support construction?
It will still take a long time to recover from the damage COVID-19 has caused not just in construction, but every industry worldwide. The Australian government has unveiled two stimulus packages along with a variety of initiatives to help cushion the blow of the COVID-19 pandemic on the economy. In this article we cover off how these actions will benefit the construction industry, both in short term solutions and longer term projects.
Nearly one in ten Australians work in construction, so the importance of the industry on our economy can’t be understated. On March 12th, a $17.6 billion stimulus package was unveiled, supporting mostly welfare, pensioners and small businesses. Ten days later, a $66.1 billion package was announced, again with a focus on those on pensions, social security and SMEs, designed to keep small and medium-sized Australian businesses open during economic hardship. Eight days after came the announcement of the $130 billion JobKeeper initiative, designed to supplement workers’ incomes and keep more people in their jobs. Apprentices are usually the first to feel the brunt of economic downturns, so JobKeeper will hopefully be effective in keeping our young workforce employed.
Throughout all the initiatives and stimulus packages, the construction industry will be supported through the following programs:
The Reserve Bank said the package combined with historic low rates, infrastructure spending and an expected recovery in residential construction could support the economic fall-out from COVID-19.
While the federal government has given its support in the form of two stimulus packages and JobKeeper, state governments have announced further measures as a response to reduce the impact of the pandemic as well.
With billions of dollars in support coming from both federal and state levels, the construction industry has the tools to deal with the downturn caused by the COVID-19 pandemic. Coates Hire will continue to support essential services throughout and we have the equipment and expertise to support your next project.
What are your thoughts on the support measures being put in place? Please leave a comment on our LinkedIn.