HomeBuilder extension to benefit NSW and Victoria above others
HomeBuilder’s extension is expected to support thousands more homebuyers.
Australian builders and tradies are expected to pick up the tools for an extra 12,000 new home builds in 2021 after the federal government extended their HomeBuilder grants scheme.
But it will be NSW and Victoria in the box seat, with measures specifically targeting them unveiled as part of the bonus round.
The construction industry stimulus program had been scheduled to end this year, but will now run to March 31.
However, those who sign a building contract after January 1 will only receive $15,000 – less than the $25,000 on offer for any signed before December 31.
In addition, Victorian buyers will be able to claim a grant on homes up to $850,000, while those in NSW will be able to spend up to $950,000 after the cap on the scheme was raised.
They also apply for those who spend more than $150,000 on a renovation, however income restrictions will still apply.
Individuals earning above $125,000 and households earning more than $200,000 will be unable to access the scheme.
The Prime Minister said HomeBuilder is a “key part” of rebuilding Australia’s economy.
The program’s initial $680m expected cost has been revised to $900m.
Prime Minister Scott Morrison said it would lead to a further 15,000 homes being built or renovated nationwide and was a “key part” of Australia’s economic recovery.
“Extending HomeBuilder will mean a steady pipeline of construction activity to keep tradies on the tools,” Mr Morrison said.
The government has estimated 27,000 homes will be built from HomeBuilder’s initial offering.
Treasury figures to November 20 show there have been 23,877 applications nationwide.
HIA have estimated about 12,000 new houses will be built as a result of the extension.
So far 7,636 Victorians have applied for a grant, followed by 5,954 Queenslanders and 4,350 people in NSW.
There have been 2,195 applications in Western Australia, 2,157 in South Australia and less than 1,000 in the rest of the state’s and territories.
Housing Industry Association managing director Graham Wolfe said the move was a “step towards a return to pre-COVID levels of home building”.
The Association had earlier this month forecast Victoria’s construction industry would be hardest hit by COVID-19 with an almost 14,000 home decline expected this financial year compared to last.
He estimated the extension would lead to 12,000 new homes being built around the country, with between 3000 and 5000 extra renovations.
Thousands of tradies and builders are expected to benefit from the extension.
“For Victoria and NSW, including the Hunter and Illawarra regions, the adjustments to the price caps will attract additional home buyers to the scheme,” Mr Wolfe said.
Victorian construction groups had been lobbying for an extension to the program after Melbourne’s second-wave lockdown paused many buyers’ plans and left builders without enough time to sign up new contracts before the end of 2020.
Master Builders Victoria chief executive Rebecca Casson said the extra time would “help keep businesses afloat” as well as tradies working.
“The next challenge in Victoria will be monitoring local government activity to ensure that land is quickly freed up and this stimulus can be maximised,” Ms Casson said.
Pundits in NSW have warned since the program was announced that it would fall short against Sydney’s nation-topping house prices.
Originally published by the Herald Sun
By Nathan Mawby
30 Nov 2020
