HomeBuilder extension could create 6000 NT construction jobs, says industry association

SIX thousand jobs would be created in the Territory construction industry if the federal government agrees to a request to extend its current HomeBuilder economic stimulus scheme time frames for the Territory and allocate it 1000 HomeBuilder applications.

SIX thousand jobs would be created in the Territory construction industry if the federal government agrees to a request to extend its current HomeBuilder economic stimulus scheme time frames for the Territory and allocate it 1000 HomeBuilder applications.

The 1000 HomeBuilder applications would represent two years worth of demand for the Northern Territory.

The Urban Development Institute Industry Association of the NT says the development industry has seen a surge in activities over the past 8-10 month – partly driven by the federal HomeBuilder Grant and also the influx of coronavirus refugees, but significantly facilitated through the low interest rates and NT government First Home Owner grants.

The UDIA NT has identified a potential cliff should the Build Bonus and HomeBuilder end at December 31.

It says the NT’s monsoonal weather conditions and remote region disadvantages cause delays that may result in many applicants not meeting HomeBuilder guidelines for eligibility.

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It has written to the federal Housing Minster Michael Sukkar, NT Treasurer and Chief Minister Michael Gunner and the Territory Economic Reconstruction Commission with a three point proposal to stop the cliff plunge and ensure ongoing growth in the residential development industry post 2020:

• Extend the current Build Bonus;
• Extent the current HomeBuilder time frames; and/or
• Provide a 1000 HomeBuilder application allocation to the NT that can be used over two dry seasons (2 years).

“We estimate that by extending the Build Bonus an additional $300m private investment will occur creating up to 2700 jobs for an NT Investment of $12 million,” UDIA NT president Hermanus Louw said.

“This represents 600 application at $20,000 per NT Build Bonus grant and we estimate that the extra 1000 HomeBuilder application can create up to 6000 jobs over two years.”

“The UDIA NT congratulates the Chief Minister for his quick responses to COVID-19 and associated incentives to keep the industry afloat.

“We encourage him to continue the incentives that are clearly working, and to advocate with federal ministers to not only extend HomeBuilder in the NT, but to facilitate an allotted 1000 applications to benefit new, or recently retuning Territorian homeowners.”

Urban Development Institute Industry Association of the NT president Hermanus Louw. Picture: Katrina Bridgeford

Mr Louw said equally the Morrison government’s HomeBuilder Scheme is strongly supported by the development industry. “However, the scheme has exposed the clear disadvantage that the Northern Territory faces in the timely delivery of residential greenfield developments, a disadvantage we would like the federal Housing Minister’s assistance with to overcome,” he said.

“Although the Territory’s population may not measure up to other states and territories in quantity, we acknowledge our strategic location as a key element in the future of the country as export and trade hub, natural gas and resource stronghold and as recently highlighted by the Prime Minster, a Defence hub.

“While a large focus is often set on our location, resources and defence capability, our housing sector has often lagged from both a regulatory and delivery perspective.

“While our location, resources and defence presence are our strengths, the Northern Territory’s seasonal climate remains a development delivery challenge.

“This can be centred on the inability of the development industry to undertake year-round civil construction works due to the seasonal monsoon wet season in the Top End.”

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In the context of the HomeBuilder Scheme, construction and civil works to deliver lots will largely be unable to occur between October 2020 and March 2021, resulting in delays to the delivery of lots, and ability to title these lots until mid-2021.

As a result many of these will not meet HomeBuilder guidelines for eligibility.

“ The Commonwealth will have the discretion to extend the application deadline,” he said.