BUILDERS BLOCK
ON BRINK Grants hang in balance
HUNDREDS of Tasmanian new- home builders face the prospect of having their conditionally approved $ 25,000 HomeBuilder grants compromised because of a lack of tradespeople.
Contracts must be signed by December 31 under the scheme, with work started within 90 days. But industry figures say the looming deadline is pushing contractors “to the brink”.
They are calling for an extension to the federal government scheme.
AN “unrealistic” time frame and a potential shortage of tradespeople threatens to compromise the plans of hundreds of Tasmanians who have been conditionally approved grants to help build new homes across the state.
Industry figures are calling for an extension to the federal government’s HomeBuilder scheme because to be eligible to receive the grant, home builders need to start work within 90 days of a building contract being signed.
Contracts must be signed by December 31 and the looming deadline is pushing contractors “to the brink”, Master Builders Tasmania executive director Matthew Pollock said.
“Anyone who has designed and built a home would know that 90 days is not enough time to get a project off the drawing board,” he said.
“On a good year, it takes an average of 77 days between a building approval being granted and building work commencing. This year is not a good year.”
The HomeBuilder program was introduced as a postCOVID recovery measure to stimulate economic activity, with Tasmanians able to apply for a combined $ 45,000 of state and federal grants.
The federal component provides $ 25,000 to build a new home or substantially renovate one, and the Tasmanian scheme offers $ 20,000 for new builds.
Premier Peter Gutwein last week wrote to federal Housing Minister Michael Sukkar to ask the federal government to extend HomeBuilder beyond December 31.
Mr Gutwein said if the federal scheme was extended, that would also happen in Tasmania, while also asking that eligibility criteria like the construction commencement deadline be reconsidered.
Tasmanians have made 619 applications for new home builds under the commonwealth scheme and 100 for substantial renovations. Of those, 244 have been conditionally approved and 49 paid out.
Under the Tasmanian grant, 448 applications have been received, with 171 conditionally approved and 33 paid.
Georgia Franks, 27, and Kase Miller, 31, are building their first home at Mornington.
They bought their block last year and work will start soon on their new three- bedroom home, which is expected to be complete within 12 months.
Ms Franks said the HomeBuilder grants had provided a welcome boost. “It’s made a massive difference. We’ve had a fair bit of extra costs come up for our block so it’s going to help go towards that,’’ she said.
They are building their new home through Ronald Young + Co Builders, and Ms Franks said the company had been helpful throughout the process, including advising them about how to access HomeBuilder.
Company managing director Paul Burnell said the program was having the desired effect. But he said while the industry was grateful for the support, timelines were unworkable and needed to be reviewed.
Mr Burnell said if the time frames were not relaxed, the availability of tradespeople would be compromised in the early months of 2021.
State Labor leader Rebecca White said she supported an extension to the scheme, saying the current eligibility timelines were unrealistic for many.
ANYONE WHO HAS DESIGNED AND BUILT A HOME WOULD KNOW THAT 90 DAYS IS NOT ENOUGH TIME TO GET A PROJECT OFF THE DRAWING BOARD
MATTHEW POLLOCK