HIA Industry Update – December 2020
On 29 November 2020, the Federal Government announced an extension to the HomeBuilder program to 31 March 2021.
The announcement of an extension to HomeBuilder by the Federal Government will support the delivery of new home and renovation projects across the Hunter region.
HIA is pleased the Government has directly taken on board our advice to extend HomeBuilder and make some improvements to the operation of the scheme. In particular adjustments regarding price caps for new builds in NSW has risen to $950,000 and the critical additional time to commence for both new and current applicants, giving builders six months from signing a contract to start work, will ensure the take up of the grant remains strong.
The very latest building approvals data shows the start of the impact of stage 1 of HomeBuilder. September recorded the second strongest month of detached home approvals in the HIA Hunter region since the GFC. Annualised detached home approvals are up 3 per cent for the year to September compared to the year earlier and 12 percent for the 3 months to September.
The extension of HomeBuilder, combined with low interest rates and first home buyer incentives, will ensure that this demand is carried forward to 2021 and activity will continue throughout the year providing long-term prospects for the entire region.
Key changes to the HomeBuilder program include:
- Amount of the Grant: A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021(inclusive).
- Application timeframe: An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
- Commencement timeframe: An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, and those entered into on or after 4 June 2020.
- Change to the property price caps: An increase to the property price cap where the contract is signed between 1 January 2021 and 31 March 2021 (inclusive) for new new build contracts (house and land) in NSW and Victoria: NSW to $950,000, Victoria to $850,000. Other states and territories remain at $750,000.
- Builder licensing/registration requirements: Where an eligible contract is signed on or after the 29 November 2020, the builder must have a valid licence/registration before 29 November 2020. Where an eligible contract is signed before 29 November 2020, the builder must have a valid licence/registration before 4 June 2020.
- All other existing program criteria applies: 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.
HIA has developed a matrix table that sets out a summary of both the current and extended HomeBuilder program requirements. To view click here or call HIA on 1300 650 620.
On behalf of HIA I wish all NHS customers, colleagues and families a Merry Christmas and a happy, prosperous and safe New Year.
HIA Executive Director – Hunter