This article is from the Australian Property Journal archive
THE federal government has extended the HomeBuilder grant of up to $25,000 in response to the unprecedented demand and unanticipated delays in the construction industry caused by COVID-19.
Treasurer Josh Frydenberg said the program would be extended from six months to 18 months for all existing applicants, bringing the total level of expected government support for the construction sector under the program to $2.5 billion — significantly higher than the original forecast of $688 million due to the unprecedented demand.
Frydenberg said more than 121,000 Australians have applied for the grant which is expected to support around $30 billion of residential construction projects.
The HomeBuilder program was specifically designed to protect tradies’ jobs and catalyse economic activity in the construction industry, particularly residential construction, in response to the downturn caused by the COVID-19 pandemic.
The extension will only apply to existing applicants and provide an additional 12 months to commence construction from the date that the building contract was signed. All applicants who signed contracts during the HomeBuilder eligibility period between 4 June 2020 and 31 March 2021 will have this extension applied to them.
“Extending the construction commencement requirement will smooth out the HomeBuilder construction pipeline, support jobs in the construction sector, and ensure that existing applicants facing difficulties in starting construction on their new builds and renovations are not denied a HomeBuilder grant due to circumstances outside their control.” Frydenberg said
Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, Michael Sukkar said the high take-up of HomeBuilder has shown that it has achieved its goal of encouraging those who had pulled back from undertaking a new build, or substantial rebuild, when the COVID-19 pandemic hit, to enter the market.
“The swift introduction of HomeBuilder gave Australians the confidence to build or rebuild a home during a period of great uncertainty. In doing so, the Morrison Government has successfully protected the more than one million jobs dependant on the residential construction sector.” Sukkar said.
Applications closed on the 14th of April, however, applicants have until 30 April 2023 to submit all supporting documentation.
UDIA national president Simon Basheer said the extension is a smart decision that maximises the number of homebuyers who can benefit from the scheme.
Property Council chief executive Ken Morrison said this extension is a common sense solution that takes the pressure off homebuyers and home builders over the next few months.
“As stimulated demand winds down we need governments to focus on rekindling Australia’s traditional drivers of demand such as overseas migration.” Morrison said.
