The federal government has extended the deadline to begin construction under the HomeBuilder grants program by an additional 12 months. This means there is now 18 months to commence construction. This is a year longer than previously allowed.
Applications closed on the 14th of April, however, applicants have until 30 April 2023 to submit all supporting documentation (such as invoices for work done, and proof that construction has commenced) to their State or Territory Revenue Office.
The extension applies to all HomeBuilder applications from day 1 till the close of applications and both the $25k and $15k grants (HomeBuilder Mark I and II).
“This extension in the commencement date for which the first slab can be laid is a very important step,” Treasurer Josh Frydenberg told reporters.
“It will help ensure a pipeline of economic activity".
Master Builders Australia Media Release - 17/4/21
Thousands of people can now be sure that they will receive HomeBuilder grants with the Federal Government’s extension of the construction start date.
Denita Wawn, CEO of Master Builders Australia said, “The scale of the HomeBuilder success - more than 120,000 HomeBuilder applications have created huge pressure on the supply chain with Master Builders Australia’s survey of the industry showing that 70% of builders are being hit by delays and cost increases for key trades and building products.”
“This also created the risk that thousands of HomeBuilder applicants could miss out on the grants because builders could not meet the construction start date requirements,” she said.
“Thanks to this move by the Federal Government, thousands of HomeBuilder applicants around the country can now breathe a huge sigh of relief,” Denita Wawn said.
“This will help builders and tradies maximise and manage the extraordinary success of HomeBuilder,” she said.
“The Federal Government showed strong leadership to introduce HomeBuilder when Covid lockdowns meant thousands of builders and tradies faced a valley of death with no forward work,” Denita Wawn said.
“Thanks to HomeBuilder those businesses and jobs were saved. It’s been one of the most effective government interventions ever,” Denita Wawn said.
Federal Government Media Release
HOMEBUILDER EXTENDED TO SUPPORT MORE JOBS
The Morrison Government is extending the construction commencement requirements for the successful HomeBuilder programme from six months to 18 months for all applicants.
The construction commencement requirement was specifically designed to be an effective catalyst to encourage residential construction demand, which dramatically fell at the onset of the COVID-19 pandemic, to protect tradies’ jobs.
Applications to the HomeBuilder program have surpassed expectations.
More than 121,000 Australians have applied for the grant which is expected to support around $30 billion of residential construction projects.
This scale of demand, coupled with delays in global supply chains, floods on the east coast and Cyclone Seroja has meant that a number of HomeBuilder applicants are facing difficulties in starting construction on their new builds and renovations.
This extension will provide an additional 12 months to commence construction from the time of contract. 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. This will ensure applicants are not denied the grant for reasons outside their control.
Treasurer Josh Frydenberg said HomeBuilder has been a key part of the Morrison Government’s National Economic Recovery Plan.
“Extending the construction commencement requirements will see the HomeBuilder construction pipeline smoothed out through to 2023 and help support jobs in the construction sector."
“This will help to alleviate concerns around capacity constraints as well as continue a steady pipeline of construction activity, keeping tradies on the tools as well as protecting other jobs across the economy.”
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.”
Applications closed on the 14th of April, however, applicants have until 30 April 2023 to submit all supporting documentation (such as invoices for work done, and proof that construction has commenced) to their State or Territory Revenue Office.
The supporting documentation will allow for payment of the HomeBuilder grant. Timing of the payment depends on whether an application relates to a new build, substantial renovation or off-the plan / new home purchase:
- New builds – grants will be paid after construction has commenced and the first progress payment has been made to the builder.
- Substantial renovations – grants will be paid after construction has commenced and at least $150,000 of the contract price has been paid in respect of the renovation.
- For off-the-plan / new home purchases – grants will be paid after the applicant(s) name is registered on title.