On the HomeBuilder package extension and what it means to builders
The Federal Government announced an initiative called the HomeBuilder package to help those who want to build their own home but was unable to push through with it early this year due to the effects of the coronavirus. Countries all around the world had to make huge adjustments and industries were affected in such a significant way. Jobs have been lost and investments had to close down. Fortunately, the building and construction industry continued on.
On the 29th of November, the Federal Government announced the HomeBuilder package extension until 31st of March 2021. This is a 3-month extension from its original deadline of 31st of December 2020. The extension of this grant has been advocated by Master Builders Victoria because of how helpful this is, not just to the industry, but to those who want to save funds while building their homes. The fact that the Federal Government was able to listen to the feedback, could do wonders for the industry as a whole.
The HomeBuilder Grant was established to help boost the construction of homes, plus create a pipeline of work for both residential and commercial construction, which had been heavily impacted by the pandemic. This would be a massive support to individuals that have been looking for ways to build their first home and for jobs in the industry.
Here are a few changes that will occur due to the extension.
As per the announcement, filing of all applications will be extended to March 31st, 2021, a couple of months after the original deadline late this year;
From January 1st to March 31st, the grant will be reduced to $15,000;
The cap for eligible funds starting from the extended period will be at $850,000 while in NSW, the cap will be lifted to $950,000 and other states remain at $750,000;
Extension of deadline for all applications has been extended until April 14th, 2021. Applications include both for the $25,000 grant and $15,000 grant. This also applies to applications signed on or after June 4th, 2020;
For contracts that will be signed after November 29th, licensing requirements for builders and developers will change;
Builders and developers must have a valid licence or registration on or after November 29th when there is an eligible contract signed on after the said date; contracts signed before will still have a builder and developer licensed before the 4th of June. All builders who obtained licence before this date may participate in the HomeBuilder program presently signed.
Contracts that will be signed on or before the 31st of December may still avail of the $25,000 grant. The rest of the existing program still applies. More information will be posted soon.