Building bonanza extended as federal government extends home grant scheme

After lobbying from housing and building industry groups, the federal government will extend the HomeBuilder stimulus scheme. SEE HOW MUCH LONGER YOU HAVE >>

NEW home builders or renovators rushing to access a HomeBuilder grant before the end of the year have been given a three-month reprieve under changes to the federal government’s stimulus scheme.

The government anticipates the extension to March 31 will support the construction or major rebuild of around 15,000 additional homes while also easing application bottlenecks.

Scott Morrison said HomeBuilder — announced as part of the Economy Recovery Plan for Australia — had helped protect the jobs of one million Australians employed in the construction sector.

“It’s critical we keep the momentum up for Australia’s economic recovery,” the Prime Minister said.

PUSH FOR EXTENSION TO POPULAR HOMEBUILDER SCHEME

TALKING POINT: HOMEBUILDER GRANTS MUST BE EXTENDED

HOMEBUILDER CAUSING FALSE REAL ESTATE MARKET INFLATION

Under the existing scheme, eligible owners wanting to build a new home, substantially renovate an existing home or buy an off-the-plan home have until December 31 to apply for a grant worth $25,000. But under the extension, eligible owner-occupier purchasers will receive only a $15,000 HomeBuilder grant for all new build contracts signed between January 1 and March 31, 2021.

Property price caps for new builds including land in Tasmania will remain at $750,000, while for renovators the cost of works must be valued between $150,000 and $750,000 with the dwelling not valued at more than $1.5m before the makeover.

Government figures show the scheme to date is expected to support around 27,000 homes with the three-month extension to increase the number to 42,000. In Tasmania, 779 applications were submitted by November 20.