Yahoo Finance HomeBuilder scheme extended: What you need to know
The Morrison Government has extended the HomeBuilder scheme for another three months, but has reduced the amount that Aussies can receive.
The scheme, which was set to end on 31 December, has now been stretched to 31 March 2021, Prime Minister Scott Morrison, Treasurer Josh Frydenberg and Minister for Housing Michael Sukkar announced on Sunday.
Also read: Warnings PM's $25k rescue plan could 'saddle' Aussies with debt
Also read: How to get the $25,000 HomeBuilder grant
Also read: Will the HomeBuilder grant get the desired results?
HomeBuilder 2.0: What’s changed
The grant amount for contracts signed between 1 January and 31 March have been reduced to $15,000, down from the previous $25,000.
Meanwhile, the property price caps for new homes built in New South Wales and Victoria have been raised from $750,000 to $950,000 and $850,00 respectively.
The cap remains at $750,000 for all other states and territories.
The deadline for all applications has also been extended to 14 April (inclusive).
The construction commencement timeframe has been extended from three months to six months, and this extension will be backdated for all contracts that began from 4 June this year.
Starting from Sunday 29 November, builders and developers will have to be appropriately licensed and registered when contracts are signed from this day forward.
And where eligible contracts were signed before 29 November, the builder or developer has to have a valid license or registration before 4 June.
Here’s all of the new changes in a chart:
Am I eligible for HomeBuilder?
Aside from the price cap changes for NSW and Victorian residents, other eligibility criteria haven’t actually changed.
“Other than the above, the existing program criteria applies,” Treasury’s website states.
“That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.”
So you’ll still have to be an Australian citizen aged 18 or over.
You also need to be earning less than $125,000 a year if you’re an individual or less than $200,000 if you’re a couple.
The value of the existing property, house and land together, also can’t exceed $1.5 million.
For more information on eligibility, Treasury has a frequently asked questions fact sheet on HomeBuilder. However, this is dated to 4 June 2020, meaning it doesn’t contain updated information on the extension.
Each state and territory has its own platform for those seeking to apply for the scheme.
HomeBuilder to continue creating jobs: PM
The extension is slated to create 15,000 more homes on top of the 27,000 homes the scheme is expected to support.
HomeBuilder was “key part” of the Government’s economic recovery plan, Morrison said.
“We’re keeping people in jobs and putting Australians’ dream homes within reach.
“Extending HomeBuilder will mean a steady pipeline of construction activity to keep tradies on the tools.”
More than a million people are employed in the housing sector, and the program’s extension will protect jobs in the construction sector and in the economy, Frydenberg said.
Treasury figures reveal HomeBuilder has had nearly 24,000 applicants, and Sukkar described the scheme as “highly effective” and “[keeping] tradies in work throughout the Covid pandemic”.
“This is a temporary and targeted programme and we want to give buyers the confidence and support to enter the market right now at a time when the economy needs it most.”
Extension needed because scheme was ‘too small, badly designed’: Labor
But Shadow Minister for Housing Jason Clare said the “changes will help”, but would not be enough.
“These changes to the HomeBuilder Scheme are too small to bridge the difference,” he said.
“According to work done by Master Builders Australia this extension of the Scheme will only increase the number of homes built this financial year by up to 1,569.”
He added that the Morrison Government were spinning their extension due to the “success” of the scheme, but said this was not the case.
“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.”
Instead, the Federal Government should invest in social housing, Clare said.
“It would be a win-win. It would create more work for tradies and put a roof over the head of Australians who really need it.”
For more information about HomeBuilder, visit the Treasury’s website.
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