“If you can't afford to go and build a new house and your kids are growing up and they need room, the option you have is to renovate your house,” Mr Morrison said.
“The average loan taken in Australia in the first three months of this year for those renovations was $164,000.
“That's what people do when they can't knock down the house and build another one or if they can't build a new home which can cost about $350,000.
"This program is all about getting 20,000 to 30,000 new starts on jobs and renovations to generate jobs in the residential building industry and support apprentices. It is about the jobs.”
Mr Morrison said his government estimated 20,000 people would access the scheme and they would be observing the uptake closely.
The Prime Minister also defended his government after being asked whether they would mess up these numbers after making significant costing errors in their JobKeeper program.
“We will see. These are estimates and uncertain times,” Mr Morrison said.
“We hope the people who may have pulled back from projects will feel more confident and we have added a lot of feedback today from the building industry who have received this very warmly.
“We understood that we are going to have a 30,000 drop off in the number of new home starts at the back end of this year so the program is very tightly constrained to try to get those projects [working].”