Relief as HomeBuilder scheme extended by three months

The property industry has hailed the Morrison government’s decision to extend the HomeBuilder grant until the end of March.

Scott Morrison has extended the HomeBuilder scheme for three months. Picture: Adam Taylor.

The property industry has hailed the Morrison government’s decision to extend the HomeBuilder grant until the end of March.

Property Council of Australia chief executive Ken Morrison said the extension would support “tens of thousands more jobs while Australia prepares for a COVID safe restart to immigration and population growth”.

“HomeBuilder saved the construction industry from falling off a cliff earlier this year. But with no substantial immigration likely next year, it makes sense to extend this economic bridge further,” Mr Morrison said.

“This is a big win for hi-vis construction jobs across Australia and all the white collar jobs that support the sector.”

Scott Morrison on Saturday morning announced the program would be extended by three months, supporting the construction or renovation of an extra 15,000 homes.

The value of the grant for people undertaking new builds or renovations will decrease from $25,000 to $15,000. But price caps for new builds will be increased from $750,0000 to $950,000 in NSW and $850,000 in Victoria.

The Prime Minister said it would help “protect the jobs of one million Australians employed in the construction sector”.

“HomeBuilder is a key part of my government’s economic recovery plan for Australia. We’re keeping people in jobs and putting Australians’ dream homes within reach,” Mr Morrison said.

“It’s critical we keep the momentum up for Australia’s economic recovery.

“Extending HomeBuilder will mean a steady pipeline of construction activity to keep tradies on the tools.”

Opposition housing spokesman Jason Clare said the changes to the scheme were not enough to support the sector.

“More needs to be done to save tradies’ jobs,” Mr Clare said.

“The Morrison spin machine says they are extending the HomeBuilder Scheme because it has been so successful.

“The fact is they have to extend it because the original scheme was too small and was badly designed.

“It is still too small to save all the jobs of the Australians who work in the residential construction industry.”

Housing Industry Association managing director Graham Wolfe said the extension was “both a step forward for jobs and a step towards to a return to pre-COVID levels of home building”.

“An extension to HomeBuilder is not only warranted but a necessary measure that will support the Australian economy into 2021 and beyond,” Mr Wolfe said.

“HIA’s forecasts predicted a significant drop in housing demand in 2021 as HomeBuilder projects finished. This extension will ensure that the demand is carried forward to 2021 and activity will continue throughout the year.

“This HomeBuilder extension brings welcome certainty and stability that will allow the Australian housing market to push forward into 2022 and regain its pre-COVID confidence and maintain a steady supply of housing at an affordable rate for Australians.”