Following the release of the COVID-19 inquiry report handed down today, Master Builders Australia CEO Denita Wawn said HomeBuilder was the right policy for the time and should not become the scapegoat for systemic housing challenges.
"The Federal Government had a difficult job of keeping the economy afloat with targeted stimulus measures while keeping people safe during a period of uncertainty," Ms Wawn said.
"As the report rightly points out, there are strong links between the strength of the building and construction industry and the broader economy. At the time, the economy was facing a full-scale shutdown and a collapse in demand with a real threat of a recession.
"HomeBuilder effectively saved businesses and jobs during the height of the pandemic and was an appropriate support measure for the time, exceeding expectations.
"While HomeBuilder may have temporarily exacerbated labour and material shortages in the building and construction industry it is not the root cause.
"The inflationary challenges we are seeing play out in the building and construction industry today are predominantly the result of a decades in the making labour and housing supply shortage.
"Rental inflation remains one of the biggest inflation drivers today which is not attributable to HomeBuilder is the result of a chronic undersupply of rental housing," Ms Wawn concluded.
