The Government’s decision not to extend the First Home Owners Grant beyond the June 30 2009 deadline could have serious consequences for the Australian economy, with the potential to cause substantial job loss.
The Master Builders Association (MBA) has predicted that there will be substantial job losses in the Western Australian economy if the Government axes the First Home Owners Grant.
At a community forum in Perth, Kevin Rudd announced the Government would not be extending the boost to the First Home Owners Grant beyond June 30, but Gavan Forster from the MBA said that job losses will be significant and not just for the building sector.
“For every million dollars worth of housing work that’s not done there are fifty jobs that are lost,” he said.
“So you multiply that by a reduction of a thousand houses that might otherwise be built under this continuation of the scheme, that’s a hell of a lot of jobs that won’t be around next year.”
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