Morrison Puts Up Cost of Renovations by 16.6% or $25,000

[Garpal Gumnut]

I believe this Liberal government is doomed to be the most out of touch government in history.

We are facing a Pink Batts stuff up of some proportion.

If a punter has a house worth less than $750,000 AND fulfils a low income test AND can afford to do $150,000 or more worth of renovations AND is an ordinary punter , said punter will be dealing with a Tradie probably never in their life having done so for such a sum.

The Tradie on the other hand now knows that the punter is getting a $25,000 gift from the gubmen for $150,000 worth of work.

What is the average Tradie likely to do. He is dealing with an unsophisticated muppet given $25,000 by a bigger muppet called Morrison.

The Tradie may well provide work billed out as $150,000 BUT will the punter get that amount of work done?

It's called the 16% rule.

Take 16% off the $150,000.

I guess if the Tradie sticks to weed and VB it may be worth it, but many Tradies have more expensive tastes.

It will be a small boost to the economy at a cost to circus artists who can jump through the hoops without a safety net.

Many will get ripped off.

gg

 

[wayneL]

On the money there GG.

Can kicking of the highest order.

 

[Garpal Gumnut]

On the money there GG.

Can kicking of the highest order.

Thanks @wayneL

btw All renovations from $500 up will now probably rise by 16%.

gg

 

[Knobby22]

I really like the idea, but if you are a bit of a battler how will you get the money from the bank?
And good point GG, how many will that do get it end up being ripped off and on A Current Affair? Not to say most builders are dishonest but they are businessmen.

Also the guys who hide their income through company structures will be able to use it easily as they will pass the income test, not top mention retirees with massive franking credits.
I predict lots of news stories of multi millionaires using it to do up their holiday houses.
Morrison had better be very very careful how he implements this or it may make Pink Batts look like a tea party.

 

[sptrawler]

Well from my perspective, we need an extension to accommodate the grandkids as they will be teenagers in a few years, the ext will cost $60k my daughter and ourselves qualify easily on the income side.
The catch is we can't afford to spend $150k and really don't need to spend that much, so it is pointless in our case.

 

[PZ99]

So in the case of NSW I can build my first home and get the State grant of $10k, kick down the front door - get a tax invoice for $150k to replace the door and get a $25k refund. That'll work.

 

[sptrawler]

I really like the idea, but if you are a bit of a battler how will you get the money from the bank?
And good point GG, how many will that do get it end up being ripped off and on A Current Affair? Not to say most builders are dishonest but they are businessmen.

Also the guys who hide their income through company structures will be able to use it easily as they will pass the income test, not top mention retirees with massive franking credits.
I predict lots of news stories of multi millionaires using it to do up their holiday houses.
Morrison had better be very very careful how he implements this or it may make Pink Batts look like a tea party.

Knobby with the $1.6m cap introduced a couple of years ago and the drop in dividends and capital value, I don't think there will be many retirees with massive franking credits I certainly know my $20k of dividends wont give much.

 

[Garpal Gumnut]

So in the case of NSW I can build my first home and get the State grant of $10k, kick down the front door - get a tax invoice for $150k to replace the door and get a $25k refund. That'll work.

Then sell it (quickly as houses are going to drop massively in price by October) and get a family member to buy their first home etc.etc.

And so on ad infinitum.

Simples.

gg

 

[tech/a]

Get a grip.

I’m a trade and employ lots of other tradies.
Totally Naive to think that a depressed building market is going to
Be able to put prices up.

We all compete with each other.
Bloody morons!

 

[sptrawler]

So in the case of NSW I can build my first home and get the State grant of $10k, kick down the front door - get a tax invoice for $150k to replace the door and get a $25k refund. That'll work.

My guess is the grant will be handled through the ATO and my gov, the money spent will have to go through a builders license and ABN, so it will show up on someones profit and loss statement.
If the builder buys a replacement door and receives $150k, it will be interesting when he is audited due to, to think the ATO wont be watching this one is a brave assumption IMO.
Time will tell, people will always find ways to rort a system, that's human nature.
Pink batts wasn't a licensed profession, so anyone could install them, anyone could start a business to install them and the batts could be sourced from anywhere and installed anywhere. Very hard to catch.
Buildings or renovations worth $150k, have to go through council a license to proceed is required and a licensed builder has to be used.
To say it is the same as the pink batts fiasco, is a silly comparison IMO, but I could be wrong.

 

[againsthegrain]

all the arabs and Indians will be getting abns and registering small businesses to do fake renovations now

 

[sptrawler]

Then sell it (quickly as houses are going to drop massively in price by October) and get a family member to buy their first home etc.etc.

And so on ad infinitum.

Simples.

gg

You do know this runs for 6 months and you do know it takes about 12months to build a house, don't you?
Also we are only talking $25k/ $150k, per application, how many family members do you have that want to build in the next 6 months, to get $25k?

 

[PZ99]

My guess is the grant will be handled through the ATO and my gov, the money spent will have to go through a builders license and ABN, so it will show up on someones profit and loss statement.
If the builder buys a replacement door and receives $150k, it will be interesting when he is audited due to, to think the ATO wont be watching this one is a brave assumption IMO.
Time will tell, people will always find ways to rort a system, that's human nature.
Pink batts wasn't a licensed profession, so anyone could install them, anyone could start a business to install them and the batts could be sourced from anywhere and installed anywhere. Very hard to catch.
Buildings or renovations worth $150k, have to go through council a license to proceed is required and a licensed builder has to be used.
To say it is the same as the pink batts fiasco, is a silly comparison IMO, but I could be wrong.

I think most people would know by now I live in an area that needs a really solid door

 

[Garpal Gumnut]

You do know this runs for 6 months and you do know it takes about 12months to build a house, don't you?

Just get two Tradies to sign off that it's been built and renovated.

This is bureaucracy we are dealing with not the real world.

gg

 

[sptrawler]

all the arabs and Indians will be getting abns and registering small businesses to do fake renovations now

As far as I know, getting a builders license isn't that easy, I know getting an electrical contractors license isn't that easy.

 

[sptrawler]

Just get two Tradies to sign off that it's been built and renovated.

This is bureaucracy we are dealing with not the real world.

gg

Oh it will happen, i can't wait to see all the bleeding hearts on t.v saying "I didn't know, I don't want to go to jail for government fraud".

 

[Austwide]

The biggest problem I see is, spending over $150K on renos on a house worth under $750K will in most cases be over capitalising and the owner will still loose. It can only work if the house is brought really cheap and that money will bring it into a reasonable value for the area.
Most houses fitting that critera end up as units.

 

[Knobby22]

On the money there GG.

Can kicking of the highest order.

Not compared to the USA.
$3 trillion already pumped in that we know of, huge deficits created over last two years to increase even more.

With reports China has stopped buying US agricultural products, new trade war looming, darling dot coms to be attacked by President, civil unrest, coronavirus out of control massive unemployment, Debt to GDP to be above 100 this year, incompetent fool still running the country.

Its going to get bad and unfortunately some of it will wash off on us in Australia.
We are going to need something like this.

 

[againsthegrain]

As far as I know, getting a builders license isn't that easy, I know getting an electrical contractors license isn't that easy.

Im guessing how it will work is 1 guy with a builders license and a Web of many small contractors, the guy with the builders license is the tip of the pyramid and the self employed contractors with abn take the fall if anything.

 

[tech/a]

I can’t believe how dumb some of the comments above really are

You do know this runs for 6 months and you do know it takes about 12months to build a house, don't you?
Also we are only talking $25k/ $150k, per application, how many family members do you have that want to build in the next 6 months, to get $25k?

any contract including land in that period most will be built in 2021

all the arabs and Indians will be getting abns and registering small businesses to do fake renovations now

you won’t have a builders licence