HomeBuilder extended
Cash grant deadline pushed out to March 31 of next year, with cap increased in NSW and VictoriaThe HomeBuilder program has proven so popular with Aussies that the Federal Government has decided to extend its deadline by three months, in addition to making several amendments to the program.
The cash handout program, which gives each eligible applicant(s) $25,000 towards building or renovating their homes, was first announced in early June as a means to stimulate an ailing construction industry due largely to the COVID-19 pandemic.
Home buyers or renovators will now have till March 31, 2021 to take advantage of the HomeBuilder program, instead of the original January 1 deadline. The Government anticipates the extension to support the construction or rebuild of around 15,000 homes, in addition to the 27,000 homes the scheme is already expected to support.
However, if the new build contract is signed between January 1, 2021 and March 31, 2021, the grant amount will reduce to $15,000 from $25,000.
In some good news, however, the property price caps for new home builds in New South Wales and Victoria (house plus land) will be increased to $950,000 and $850,000 respectively, from $750,000.
The cap increase only applies to projects signed off between January 1 and March 31, 2021.
In addition, the construction commencement deadline will be extended from three months to six months for all eligible contracts signed on or after June 4, 2020, in recognition of the surge in demand builders are facing.
According to Federal Housing Minister, Michael Sukkar, the program has already received around 24,000 applications so far, on track to exceed expected take up levels.
“This has been a highly effective programme that’s delivering real results for home buyers and has kept tradies in work throughout the COVID pandemic,” he said.
“There is no better proof of HomeBuilder’s success than the latest Housing Industry Association’s new home sales data, which shows sales are 31.6 per cent higher in the three months to October 2020 when compared with the same time last year.
“This is a temporary and targeted programme and we want to give buyers the confidence and support to enter the market right now at a time when the economy needs it most.”
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According to preliminary data, application numbers are the highest in Victoria, followed by Queensland and NSW.
The majority of applications (80 per cent) were for new home builds, with about 4700 applications for renovations.
In summary, the updated HomeBuilder program key criteria and grant amounts are as follows:
For contracts signed between June 4 and December 31, 2020:
- Eligible applicants will receive $25,000 towards a new home build or a major renovation of their principal place of residence.
- Construction must commence within six months of the contract being signed.
- For new home builds, property value (house plus land) cannot exceed $750,000 in all states and territories
- For major renovations, the value of the property pre-renovation cannot exceed $1.5 million.
For contracts signed between January 1 to March 31, 2021:
- Eligible applicants will receive $15,000 towards a new home build or a major renovation of their principal place of residence.
- Construction must commence within six months of the contract being signed.
- For new home builds, property value (house plus land) is capped at:
- For major renovations, the value of the property pre-renovation cannot exceed $1.5 million.
All applications for the HomeBuilder program must be submitted to the relevant State Revenue Office by April 14, 2021.
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