HomeBuilder provides eligible owner-occupiers (including first-home buyers) with a grant to build a new home or substantially renovate an existing home. HomeBuilder assists the residential construction sector by encouraging the commencement of new home builds and renovations.
On 29 November 2020, the federal government announced an extension to the HomeBuilder program to 31 March 2021.
The Tasmanian government has been running a companion HomeBuilder and Premier Peter Gutwein said “…. should the Australian Government extend the program beyond 31 December 2020, the Tasmanian Government would also extend the Tasmanian HomeBuilder Grant for the corresponding period.” We are now waiting for details to emerge of state’s offer.
LISTEN: MBT Executive Director Matthew Pollock explains HomeBuilder extension on ABC Radio
Changes to the federal 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 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.
Master Builders Tasmania
Celebrating a significant advocacy win, Master Builders Tasmania Executive Director Matthew Pollock said MBT members can take a great deal of satisfaction that this extension is the result of months of intense lobbying by the association.
“We commend the federal government for listening to industry and providing an extension to HomeBuilder,” Mr Pollock said.
“The extension is needed to take pressure off supply chains and make sure prospective home owners do not miss out due to unrealistic timeframes.
“The extension means more Tasmanians will own their own home and be advantaged by the social and economic benefits that come with home ownership.
“The move continues to put construction and home ownership at the centre of our post-COVID recovery strategy, recognising the industry a key economic accelerator and jobs generator that is growing confidence,” Mr Pollock said.