‘Doing the right thing’: Property Council lauds HomeBuilder deadline extension

First introduced on 4 June 2020, the HomeBuilder initiative offers eligible home owners and first home buyers a grant of $25,000 to help cover the cost of building a new home or substantially renovating an existing one.

While the scheme was originally designed to apply to contracts signed between 4 June and 31 December 2020, its success and popularity prompted the Australian government to extend the scheme in November 2020 to include eligible contracts signed between 1 January and 31 March 2021.

Applications to apply for the grants closed on 14 April 2021, while the deadline to submit the relevant documentation to prove eligibility is currently set this 30 April 2023. 

Notably, the HomeBuilder grant initially required work to begin within three months of the contract being signed. 

However, due to supply issues and the demand on the construction industry, this was pushed out to six months and then again to 18 months. On the other hand, the deadline to submit the paperwork to receive the grant remained unchanged.

Concerningly, the average construction time frames for off-the-plan units had blown out to more than two years, the government said.

For additional context, off-the-plan or new home purchases need to provide title documents to receive the HomeBuilder grant, which is only issued when construction is completed.

Given the current scenario, that means thousands of HomeBuilder applicants stood to miss out on the grant under the previous April 30 deadline.

But Aussies who would otherwise miss the current deadline will now have until 30 June 2025 to submit their supporting documentation, subject to the agreement of states and territories. 

The extension will only apply to existing, already-approved HomeBuilder applicants who have received formal approval for off-the-plan purchases or renovations, but have been affected by supply constraints and construction industry delays.

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

In addition to the decision not affecting the budget, she highlighted that the extension will also “ease the burden on families right across the country who are relying on this grant”. 

Property Council chief executive Mike Zorbas welcomed the decision, stating that moving the deadline submission of supporting documentation is “the right thing to do”. 

“The Australian government is doing the right thing for those HomeBuilder recipients affected by weather and supply constraints around the country.”

He said that the extension, if backed by state and territory governments, will help approved applicants who are already in the scheme and have relied on it.

“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. 

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