HomeBuilder program has been a key part of the Morrison Government’s National Economic Recovery Plan.
HomeBuilder forms part of a range of Australian Government initiatives intended to support confidence in the residential construction sector and encourage consumers to proceed with purchases or renovations that may have been delayed due to uncertainty around the effects of the COVID-19 pandemic.
ABBTF is pleased that the Government is extending the construction commencement requirement for the successful HomeBuilder program from six months to now 18 months for all existing applicants, bringing the total level of expected Government support for the construction sector under the program to $2.5 billion.
More than 121,000 Australians have applied for the grant which is expected to support around $30 billion of residential construction projects.
The HomeBuilder program was specifically designed to protect tradies’ jobs and catalyse economic activity in the construction industry, particularly residential construction, in response to the downturn caused by the COVID-19 pandemic.
The extension will only apply to existing applicants and provide an additional 12 months to commence construction from the date that the building contract was signed. 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.
“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.”
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 started) to their State or Territory Revenue Office.
The supporting documentation will allow for the 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.
More information on HomeBuilder can be found on the Treasury website.