Industry hails SA’s HomeBuilder rules deal as scheme opens

Risks that threatened to leave the HomeBuilder scheme dead on arrival present no risk for SA renovators who can take advantage of the nation’s easiest deal, builders say.

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South Australia has access to the best $25,000 HomeBuilder scheme in the country, the local building sector says.

Applications for the Federal Government’s $25,000 home or renovation scheme have opened in SA with 8,700 locals already registering interest in the scheme before the application process opened yesterday

New regulations, developed following negotiations between the State and Federal Government, have ensured potential hold ups and delays set to be experienced in other states will be avoided.

There had been concerns that the three month window for the $680 million stimulus measure would close before finance deals and council approvals had been finalised.

Both the Master Builders Association of SA policy director Will Frogley and Housing Industry Association executive director Stephen Knight have both described the system in SA as the best in the country.

The rules in SA differ from other states in a number of areas including increased flexibility in defining when work has started and better clarity on defining what could trigger a three month extension.

Mr Frogley said the SA rules will be easier for builders to meet greatly reducing the risk of South Australian’s missing out on the $25,000.

“Under these guidelines building will start quickly and the scheme will run far more smoothly because the most important practical issues with implementation have now been addressed,” he said.

Mr Knight said the scheme was a massive boost for the builders, tradies, apprentices and suppliers.

“They faced falling off a cliff in the next few months as the current pipeline of work ran out,” he said.

He said the industry is now preparing for work for at least the next nine to twelve months.

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.

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Last month The Advertiser revealed the HomeBuilder scheme was two weeks behind schedule because the states and territories had not agreed to the roll out terms of the scheme with the Commonwealth.

Treasurer Rob Lucas spruiked the signing yesterday adding the scheme meant first new home buyers in SA will, therefore, now be eligible for up to $40,000 in grants towards their new home build (including the existing $15,000 State Government incentive) subject to meeting the eligibility criteria for each scheme.

“HomeBuilder is a welcome shot in the arm for our state’s critical housing and construction sector, which supports thousands of local jobs – from carpenters, plumbers and bricklayers to electricians, architects and other suppliers,” Mr Lucas said.

“This economic stimulus measure will not only help ensure an ongoing pipeline of work for local businesses but will give a leg-up for many South Australians looking to build a new home or substantially improve their existing property.”

Under the scheme, contracts must be signed between June 4 and December 31 (inclusive) this year, and construction must commence within three months of the contract date.

Go here to apply for the HomeBuilder scheme