HomeBuilder paperwork deadline extended

PROPERTY owners in danger of missing out on COVID-19 era cash grants through no fault of their own have won a reprieve, with the deadline to submit paperwork for the national HomeBuilder scheme extended.

Subject to agreement with the states and territories, Federal housing minister Julie Collins said otherwise eligible applicants who would have missed the 30 April cut-off will now have until the end of June 2025 to provide supporting documentation.

The extension will only apply to existing, already-approved applicants who have formal approval for off-the-plan purchases or renovations.

With rate hikes and runaway Australian construction costs biting hard, Ms Collins said the extra time would support those who had entered into financial commitments believing they’d secure grants but affected by supply constraints and delays.

“Too many Australians stood to miss out on support they believed they would receive through no fault of their own,” she said.

“This decision will not cost the budget but it will ease the burden on families right across the country who are relying on this grant.”

The popular $25,000 grants were issued during the pandemic but later came in for heavy criticism.

While stimulating the construction sector as they were designed to, the home builder and renovator payments went too far and contributed to “overheating” as costs hit record highs, according to experts.

A KPMG review of the HomeBuilder program done on behalf of Treasury in November found the external supply chain issues and state level construction grants also added fuel to the fire.

However, Ms Collins said the extension would draw a line under the previous Federal Government’s HomeBuilder program.

Lengthy delays had meant thousands of applicants who had purchased off-the-plan apartments stood to miss out because title documents that needed to be submitted to prove eligibility could not be issued until construction was complete, she said.

The Property Council of Australia welcomed the news.

“The new home aspect of HomeBuilder was a remarkably successful job saver and confidence booster during and after the most severe health related lockdowns in more than a century, said chief executive Mike Zorbas.

“Retaining the positive promise of a scheme we hope is never needed again, is thoughtful public policy.”

Master Builders Australia chief executive Denita Wawn said the average time to build a home had blown out from nine to over 12 months.

“The extension allows builders to ensure there’s adequate time to deliver on projects during a time that has seen a perfect storm of pressures in the industry,” she said.

The grants program was launched in June 2020, offering up to $25,000 towards new homes and large renovations. In 2021, $15,000 grants were introduced for eligible owner-occupiers.

– BY JOHN KIDMAN/ AAP