Delay on the SA roll-out the Federal Government’s new $25,000 HomeBuilder scheme

South Australians wanting to take advantage of the much-touted HomeBuilder scheme, which promises $25,000 grants for building new homes and extensions, will have to wait a little longer after its rollout was hit by a delay.

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South Australians wanting to take advantage of a $25,000 grant for a new home or major renovation will have to wait as states and territories continue to argue about how to roll it out.

More than two weeks after Prime Minister Scott Morrison announced the multibillion-dollar construction stimulus package designed to save tens of thousands of tradie jobs roll out is still in limbo.

A final sign off is not expected until at least next week.

Under the scheme, couples with a combined income of up to $200,000 can secure a $25,000 grant to build a new home or for major renovations but only if the contract is worth more than $150,000.

But Treasurer Rob Lucas has told the State Parliament, prompted by a question from Greens MP Mark Parnell, that some finetuning on how the scheme will be rolled out means a deal with the Commonwealth is still yet to be struck with the states and territories.

“Put in its simplest form, the Federal Government is proposing to pay the funds, but it is requiring of the states and territories to implement the scheme, therefore to pick up the costs of implementing the scheme,” Mr Lucas said.

South Australian Treasurer Rob Lucas says the Federal Government wants the states and territories to pick up the costs of rolling out the new $25k HomeBuilder scheme. Photo: AAP Image / David Mariuz.

“It is fair to say that some jurisdictions do have a number of issues which, while South Australia understands the particular concerns, we are prepared to move more imminently and quickly perhaps than some of the others.”

Mr Lucas said one of the major sticking points of the scheme has been a strict three month timeline that stakeholders fear is going to be difficult because of councils planning approvals and bank financing agreements.

“South Australia, together with a number of other jurisdictions, went back to the commonwealth and said, ‘We think this is unreasonable, and you may well find that the policy purpose you want will be negatively influenced by the strict interpretation you have put in the agreement’,” he said.

“To their credit, the Commonwealth further amended the agreement, and essentially has left it back on the states to make a judgment.”

Master Builders Association of SA spokesman Will Frogley told The Advertiser the sector was keen to see the program, that he said has “enormous potential” up and running.

“Master Builders SA has been inundated with calls from South Australians wanting to know how they can access the grants and our members are reporting the strongest foot traffic through display homes in years,” he said.

“There were some practical issues with implementing HomeBuilder in its original form, especially the requirement to commence construction within three months.

“The performance of banks and councils would take the ability to meet this requirement out of many builder’s hands, so it is welcome that South Australia will now have discretion when unforeseen delays impact on this requirement.”

South Australia has a $15,000 first home builder’s grant.

But Mr Lucas has ruled out matching to compliment the Federal Government’s $25,000 time-sensitive scheme.