Extension boost for builders
THE Territory construction industry and new homeowners have received a boost, with the federal government extending the construction start requirement for the successful HomeBuilder program from six months to 18 months for all existing applicants.
This brings the total level of expected federal support for the construction sector under the program to $2.5bn.
More than 121,000 Australians have applied for the grant, which is expected to support about $30bn of residential construction projects nationwide.
Master Builders Australia says extending the start date means thousands of people can now be sure that they will receive HomeBuilder grants
Chief executive officer Denita Wawn said the scale of the HomeBuilder success created the risk that thousands of HomeBuilder applicants could miss out on the grants because builders could not meet the construction start date requirements.
Master Builders NT chief executive Dave Malone said one of the success factors behind all of the pandemic stimulus had been a very pragmatic approach to shaping and implementing those schemes.
“It’s been clear for some time now that both Homebuilder, and the Territory’s BuildBonus Scheme, have been highly successful,” he said. “So much so that they have put genuine strains on supply chains – from land availability to all forms of trade skills and product lines.
“Our industry had their fingers crossed that even though the economy was well and truly rebounding, that same pragmatism would still hold sway. The modifications ... announced by the federal Treasurer are therefore really welcome by homeowners, builders, tradies and suppliers.
“We thank the Opposition Leader Lia Finocchiaro and Senator (Jane) McMahon for their lobbying. The key will be to ensure that the rules around both schemes are aligned.
“That ball is now in the Territory government’s hands.”
The extension to the construction start date will provide an additional 12 months to start construction from the time of contract.
All applicants who signed contracts during the HomeBuilder eligibility period between June 4, 2020, and March 31 this year will have this extension applied to them.
Treasurer Josh Frydenberg said this would ensure applicants were not denied the grant for reasons outside their control. “Extending the construction start 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,” he said.