HomeBuilder construction date extended

The Federal Government has once again amended its popular HomeBuilder program, this time its construction commencement deadline to allow builders more time to obtain supplies and get around to the more than 121,000 applications received since the program was introduced.

Initially, for home owners and renovators to qualify for the grant, the project needed to commence within six months of the contract being signed. However, under the latest amendment, builders now have 18 months to start the build in response to unanticipated delays in the construction industry caused by COVID-19 related supply constraints including delays in global supply chains and recent natural disasters.

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The extension applies to all existing applicants who signed contracts during the HomeBuilder eligibility period between June 4, 2020 and March 31, 2021.

The extension brings the total level of expected Government support for the construction sector under the program to $2.5 billion.

The Government estimates HomeBuilder will support around $30 billion of residential construction projects.

“Extending the construction commencement 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 due to circumstances outside their control,” said Treasurer Josh Frydenberg.

Applications closed on the 14th of April, however, applicants have until April 30, 2023 to submit all supporting documentation (including invoices and proof of construction commencement) to their State or Territory Revenue Office.

The Government also released some guidelines around payment and timing. When payment is made depends on whether an application relates to a new build, substantial renovation or off-the plan purchase, it added.

For new home builds, grants will be paid after construction has commenced and the first progress payment has been made to the builder.

For 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 purchases, grants will be paid after the applicants name is registered on title.