Extension to HomeBuilder
After unprecedented demand and lobbying from property and building industry bodies, The Federal Government on Sunday 29 November, announced an extension to the HomeBuilder Program until 31 March 2021.
Adjustments to the Program will include:
- From 1 January 2021 until 31 March 2021, the HomeBuilder Grant for building contracts for new builds and substantial renovations will reduce from $25,000 to $15,000.
- The deadline for all applications that are submitted for both the $25,000 and $15,000 Grants will be extended and can now be submitted up until 14 April 2021. Eligible contracts signed on or after 4 June 2020 will also apply.
- The construction commencement timeframe will increase from 3 months to 6 months and will apply to all building contracts entered into on or after 4 June 2020.
- In Victoria, the property price cap for new build contracts will increase to $850,000 and for New South Wales, $950,000. All other states and territories will remain the same at $750,000.
- All other criteria for the Program will remain the same.
Red23 Managing Director Terry Portelli said, “Since the introduction of HomeBuilder on 4 June, we have seen 7,636 Victorian applications for the Grant. This has really supported the land and new homes industry from a potential catastrophe during Covid-19.
The Program not only supported home buyers with secure employment but critically, thousands of Victorians who work onsite developing communities and building homes and those who have been working from home to keep operations on track.
Although we were lobbying for the extension to be implemented earlier, the announcement by the Federal Government will continue to help fill the construction pipeline with no substantial immigration forecasted in 2021.
Along with the recent Victorian State Budget announcement to waver up to 50% of Stamp Duty for new builds up to $1 million, we are predicting positive momentum in the land and new homes market in the first quarter of next year.
We would like to thank again The Property Council of Australia, The UDIA, Master Builders Victoria and the REIV for their continued leadership and lobbying of the Federal and State Governments this year. These recent announcements are a major boost to all who work and have a vested interest in our property industry."
For further information on the extension of the HomeBuilder Grant, read the Federal Treasury’s Economic Response to the Coronavirus, HomeBuilder .
02 December, 2020