Media Release
17 April 2009
MASTER BUILDERS RENEWS CALL FOR
FIRST HOME OWNERS BOOST EXTENSION
Statement by Peter Jones, Chief Economist
Master Builders Australia, the peak body for the building and construction industry renews its call for the
Government to extend the First Home Owners Grant ‘boost’ scheme for new homes in light of weaker
than expected data released by the ABS.
Master Builders Australia Chief Economist, Peter Jones, said “Preliminary ABS data for all sectors of
building activity in the December quarter have all been revised downwards in the latest release and this
comes on top of Master Builders’ March quarter National Survey revealing builder pessimism has been
compounded by a project finance ‘drought.
“The significant deterioration in the building environment points to an urgent need for further assistance
to help the building and construction industry cope with fall out from the global financial crisis and a
looming downturn.
“The warning in these figures is that as new work dries up there is only a limited time for builders’ work
in hand to cushion the sector.
“Importantly, the First Home Owner ‘boost’ Scheme is providing key impetus to demand that will
eventually trigger improved residential building activity.
“But with more bad news to come in the short term as dwelling commencements plunge, Master
Builders calls on the Government to extend the ‘boost’ scheme for new homes to ensure that the
impending recovery is not ‘still-born.
“Effective and timely measures such as the boost scheme can help provide critical stimulus needed to
insulate the economy from the worst effects of the global financial crisis, particularly unemployment.
“Master Builders believes there is a need to extend the eligibility period for
the $21,000 first home
owners grant ‘boost’ scheme for new houses until at least the end of December 2009.”
Mr Jones said, “The key to the outlook for the construction industry over the next two years will be
whether an upswing in the residential sector can offset looming weakness in non-residential building
and engineering activity as the previously strong pipeline of work begins to fall away.”
The value of building work done in seasonally adjusted chain volume measures fell by 1.6 per cent
in the December quarter 2008, to be 3.2 per cent up on the corresponding quarter a year ago.
The value of new residential building fell by 1.8 per cent in the December quarter, to be up 2.9 per
cent on a year ago.
The value of alterations and additions to residential building fell by 3.9 per cent in the December
quarter, to be down 3.0 per cent on a year ago.
The value of non-residential building fell by 0.9 per cent in the December quarter, to be up 4.9 per
cent on a year ago.
All figures have been revised downwards since the release of preliminary work done figures in
February.
For further information, contact:
Peter Jones, Chief Economist, Mobile 0403 440 838
NEWS 
