The federal government has flagged cash grants to allow Australians to fund home renovations, as part of a multi-billion dollar building stimulus package.

Prime Minister Scott Morrison this morning confirmed talks are under way about how to revive the residential building industry.

The proposed measure would target 380,000 tradies across the country.

It comes as economists warn the downturn caused by coronavirus could see the construction industry dive after September, when current work dries up.

But President of Builders Collective of Australia, Phil Dwyer, said he “can’t imagine why” the government would introduce such a scheme.

Mr Dwyer told 3AW’s Ross and John the building sector is as busy as ever.

“At the moment I think it’s a little bit busier than usual!,” he said.

“There’s a heap of renovations in every suburb in this town.

“I can’t imagine why we would need cash injections to help us. We’re just going to overheat the industry.

“I don’t think it’s needed.”

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