In a surprise announcement made after the Homebuilder Grant application deadline, the Australian Government has announced an amendment to the Grant that is greatly beneficial to all parties involved.
The Homebuilder Grant has been hugely successful in the revitalisation of the property market during the pandemic by incentivising Australians to purchase, build or renovate their property. The amendment extends the deadline for construction to commence from 6 months to 18 months after the initial contract has been signed, which creates wide reaching benefits for all Australians such as:
Relieving pressure on builders
Applicants are worrying that the builders will not be able to commence construction within 6 months of the contract date according to the grant requirements. The huge influx of demand for builders added to global supply shortages due to the pandemic meant many builders faced difficulty obtaining the necessary materials and manpower to commence construction within the short time frame. Additionally, local councils were receiving much more development applications and required more time than usual for assessment and approvals.
The extension’s purpose was to ensure that existing applicants will not be denied the Grant due to circumstances outside their control according to Treasurer Josh Frydenburg. Builders now have ample time to obtain approvals and resources to confidently meet the current demand, while Applicants no longer need to worry about the construction deadline. Having an extra year to commence construction also ensures that builders will not use cheaper substitute material or cut corners to rush to begin construction. Builders can source proper materials to build giving Purchasers will have a peace of mind regarding the quality and safety of their houses.
Sustaining long-term economic activity
With the extension of the deadline, the Australian Government is also trying to maintain long-term economic growth rather than just a short burst of activity. Builders can organise the construction of their current projects around the extended 18 months and allocate their demand for resources over the period. This spreads out the growth of the building sector, creating more business activity and employment over the extended period.
Unfortunately, this extension DOES NOT extend the application deadline of 14 April 2021. Upon enquiry to the Revenue NSW, they have confirmed that no new applications will be accepted, and the extension only applies to existing applicants.
The Australian Government has succeeded in their goals of stimulating the building industry with the overwhelming success of the Homebuilder Grant and the amendments further relieves existing concerns regarding the building deadline. We hope to see further governmental grants and schemes to promote the economy, and please keep an eye on our articles to stay updated on any new advances. Do not hesitate to contact us at 02 9267 4988 or Vincent.firstname.lastname@example.org at any time if we can assist you in any way.