With HomeBuilder applicants stressing over how they were going to meet construction and building deadlines – Mortgage Advice Bureau’s lead broker TRACEY KEAREY welcomes Treasurer Josh Frydenberg’s recent announcement for an extension of the construction deadlines for the program.

The Morrison Government is extending the construction commencement requirement for the successful HomeBuilder program from six months to 18 months for all existing applicants, bringing the total level of expected Government support for the construction sector under the program to $2.5 billion.

More than 121,000 Australians have applied for the grant which is expected to support around $30 billion of residential construction projects.

The HomeBuilder program was specifically designed to protect tradies’ jobs and catalyse economic activity in the construction industry, particularly residential construction, in response to the downturn caused by the COVID-19 pandemic.

The Government’s decision to provide existing applicants with an additional 12 months to commence construction responds to unanticipated delays in the construction industry caused by COVID-19 related supply constraints including delays in global supply chains and recent natural disasters.

The extension will only apply to existing applicants and provide an additional 12 months to commence construction from the date that the building contract was signed. All applicants who signed contracts during the HomeBuilder eligibility period between 4 June 2020 and 31 March 2021 will have this extension applied to them.

Treasurer Josh Frydenberg said the successful HomeBuilder program has been a key part of the Morrison Government’s National Economic Recovery Plan.

“Extending the construction commencement requirement will smooth out the HomeBuilder construction pipeline, support jobs in the construction sector, and ensure that existing applicants facing difficulties in starting construction on their new builds and renovations are not denied a HomeBuilder grant due to circumstances outside their control.”

Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, Michael Sukkar said the high take-up of HomeBuilder has shown that it has achieved its goal of encouraging those who had pulled back from undertaking a new build, or substantial rebuild, when the COVID-19 pandemic hit, to enter the market.

“The swift introduction of HomeBuilder gave Australians the confidence to build or rebuild a home during a period of great uncertainty. In doing so, the Morrison Government has successfully protected the more than one million jobs dependant on the residential construction sector.”

Applications closed on the 14th of April, however, applicants have until 30 April 2023 to submit all supporting documentation (such as invoices for work done, and proof that construction has started) to their State or Territory Revenue Office.

The supporting documentation will allow for the payment of the HomeBuilder grant. Timing of the payment depends on whether an application relates to a new build, substantial renovation or off-the plan / new home purchase:

  • New builds – grants will be paid after construction has commenced and the first progress payment has been made to the builder.
  • Substantial renovations – grants will be paid after construction has commenced and at least $150,000 of the contract price has been paid in respect of the renovation.
  • For off-the-plan / new home purchases – grants will be paid after the applicant(s) name is registered on title.

More information on HomeBuilder can be found on the Treasury website.

Tracy Kearey is an award winning finance and mortgage broker with 22 years experience. She has access to over 40+ lenders and offers her clients access to extensive range of loan products and services tailored to individual borrowing needs. If you need assistance with your lending needs you can send Tracy an email or give her a call on M: 0417 738 469.

Share This
First Home Buyer NEWS: HomeBuilder Extended to Support More Jobs