Home builder grant
(Image: AAP/Dan Peled)

Have Scott Morrison and Josh Frydenberg lost their nerve on the economy?

Having apparently spent more time leaking the details of its construction industry package than actually preparing them, the government yesterday released its "HomeBuilder" policy to, at best, tepid enthusiasm in some quarters and harsh criticism in others.

Ignoring widespread calls, including from the Master Builders Association, for a big investment in social housing, the package aims less than $700 million at a particularly narrow sweet spot -- families under $200,000 a year building a house up to $750,000 or undertaking a large renovation in houses up to $1.5 million in value.