Treasury costings reveal HomeBuilder scheme 'too small': Labor

The HomeBuilder stimulus package will see an extra 9600 jobs created in the housing construction industry, new Treasury figures show, falling short of the government's claims it would support hundreds of thousands of workers.

Opposition housing spokesman Jason Clare said the figures showed the government had been "peddling a lie" about the benefits of HomeBuilder.

In an answer to questions on notice from Parliament's coronavirus inquiry, Treasury said HomeBuilder was expected to generate an extra $1.6 billion in residential investment this financial year.

For every $1 million spent, at least six full-time jobs in construction and related industries would be supported, the costings show.

"[The government] promised to save hundreds of thousands of jobs, but their own department says this will support 9600," Mr Clare said.

"This is concrete proof that the HomeBuilder scheme is too small and more action is needed to save the housing industry."

But Housing Industry Association managing director Graham Wolfe said Treasury had ignored the benefits of the $680 million cash injection to existing projects.

"A key objective of the HomeBuilder program was to encourage demand and stimulate projects that had otherwise been put on hold," Mr Wolfe said.

"The figure of $1.6 billion in construction activity woefully underestimates the positive impact of HomeBuilder."

He said it would bring forward demand and help stand up projects that otherwise would have collapsed during the second half of 2020-21.

By his estimates, the program would help 110,000 workers and unlock between $10 billion and $15 billion worth of activity in the sector, matching up with Housing Minister Michael Sukkar's projections.

Mr Sukkar said industry experts had shown strong support for the program.

"HomeBuilder is temporary and targeted support to keep the pipeline of construction flowing," he said.

"We understand Labor do not support HomeBuilder and do not believe tradies and the construction industry deserve this support."

The outlook for the industry and the economy is extremely grim and HomeBuilder should be extended for 12 months.
— Denita Wawn, Master Builders Association CEO

Mr Sukkar has repeatedly said the program would support "hundreds of thousands" of jobs.

Mr Clare said pumping funding into social housing builds would help Australia's economy while addressing housing shortages.

Australian Institute of Building executive director Geoff Dart said social housing builds would be a more solid investment during the economic uncertainty brought on by coronavirus.

He said superannuation funds and private investors could see steady 3 per cent to 4 per cent returns, as opposed to fluctuating returns of 5 per cent to 10 per cent in a regular share portfolio.

"If it goes into social housing you're doing better than a super fund at the moment," Mr Dart said.

"We've got to look at ways of making housing more affordable."

Master Builders Australia has said recent government figures show a 9 per cent jump in the number of loans for new builds.

"However, the outlook for the industry and the economy is extremely grim and HomeBuilder should be extended for 12 months," chief executive Denita Wawn said.