The Morrison Government has listened to Master Builders and is extending the HomeBuilder program by three months. This will drive further demand in our vital construction sector and keep protecting jobs by supporting the construction of new homes and renovations.
Key changes 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 NSW to $950,000 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 the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
- Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.
| HomeBuilder program criteria | Contracts signed between 4 June and 31 December 2020 (inclusive) | Contracts signed between 1 January and 31 March 2021 (inclusive) |
|---|---|---|
| Grant amount (new builds and substantial renovations) | $25,000 | $15,000 |
| Construction commencement timeframe | Construction must commence within six months of the contract being signed. | |
| New build price cap | Property value cannot exceed $750,000 | Property value cannot exceed:
|
| Substantial renovation price cap | The value of the property cannot exceed $1.5 million (pre renovation). | |
| Application deadline | Applications must be submitted to the relevant State Revenue Office by 14 April 2021. | |
| Licensing requirements for builders/developers |
|
|
| Other eligibility criteria | Existing program eligibility criteria remains. | |
“The Government’s extension of HomeBuilder shows its ironclad determination to achieve economic recovery,” said Denita Wawn, CEO of Master Builders Australia.
“The Morrison Government knows all to well that a strong building industry means a strong economy. That’s why they are making our industry the accelerators of recovery and why they are backing in more than 360,000 home builder and tradie businesses with today’s announcement,” she said.
“Extending HomeBuilder is a giant leap forward towards economic recovery. It will generate billions in economic activity, help save thousands of builder and tradie businesses from going under and protect thousands more jobs in the building supply chain,” Denita Wawn said.
“Today’s announcement is reflection of the Morrison Government’s willingness to listen and act resolutely in the community’s interest,” she said.
“Master Builders has been calling for HomeBuilder to be extended for months. Our forecasts show that despite the hugely positive impact of HomeBuilder Mark I the housing sector still faces a devastatingly steep decline putting thousands of businesses and jobs in jeopardy. We particularly recognise the efforts of the Assistant Treasurer and Minister for Housing who has been an unceasing advocate for our industry and game-changing effectiveness of the HomeBuilder,” Denita Wawn said.
“Importantly, this move will help create a pipeline of work for commercial construction businesses that build high rise apartments and other medium density dwellings. Our forecasts show that their forward work is about to fall off a cliff with apartment construction activity facing a massive 40% drop,” she said.
“The HomeBuilder grants are also the leg up that thousands of Aussies need to help them overcome the daunting deposit gap and get themselves into the housing market,” Denita Wawn said.
“We know that owning your own home is one of the most effective ways for people to build household wealth to provide financial security during their working lives and their retirement. So extending HomeBuilder also provides huge long term benefits,” Denita Wawn said.