Government to extend the HomeBuilder program
- Posted By Pasang Sherpa
The Morrison Government is extending the highly effective HomeBuilder program which is driving demand in our vital construction sector and protecting jobs by supporting the construction on new homes and home renovations.
HomeBuilder will remain demand-driven and will be extended from 1 January 2021 to 31 March 2021 which is expected to support the construction or major rebuild of around 15,000 homes. This is in addition to the 27,000 homes the scheme is already expected to support, bringing it to a total of around 42,000 homes across Australia.
Prime Minister Scott Morrison said HomeBuilder was driving demand for building work and helping protect the jobs of one million Australians employed in the construction sector.
Minister for Housing and Assistant Treasurer Michael Sukkar said HomeBuilder would also be adjusted for the building and housing market’s conditions, and after consultation with the construction sector.
For all new build contracts signed between 1 January 2021 and 31 March 2021:
- Eligible owner-occupier purchasers will receive a $15,000 HomeBuilder
- The property price caps for new builds in New South Wales and Victoria will be increased to $950,000 and $850,000 respectively.
In addition, the construction commencement deadline will be extended from three months to six months for all eligible contracts signed on or after 4 June 2020.
Minister Sukkar said the most recent data showed HomeBuilder had already had around 24,000 applications, on track to exceed expected to take-up levels.
This announcement also builds upon the extension of the First Home Loan Deposit Scheme announced in the Budget, which delivered 10,000 guaranteed loans to allow first home buyers to obtain a loan to build a new home or purchase a newly built home, with a deposit of as little as five percent.
Changes to the HomeBuilder program include:
- A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
- An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
- An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
- An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
- The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
- A change in licensing requirements and registration for builders and developers, as below
- Where an eligible contract is signed on or after 29 November 2020, the builder or developer must have a valid license or registration before 29 November 2020.
- Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid license or registration before 4 June 2020.
SOURCE:
Anon., 2020. ministry.treasury.gov.au. [Online]
Available at: https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/homebuilder-success-sees-programme-extended
Anon., 2020. treasury.gov.au. [Online]
Available at: https://treasury.gov.au/coronavirus/homebuilder