HomeBuilder scheme booms as more than 82,000 owners take up grants

The federal government's Homebuilder program has now reached 82,000 applications, creating a pipeline of work for the nation's tradies, valued at a staggering $18 billion.

Designed to boost jobs in the construction and renovation sectors following the COVID-19 pandemic, the scheme offers grants of up to $25,000 for home owners.

Announcing the figures at a press conference this afternoon, Prime Minister Scott Morrison said the take-up of the scheme was "far beyond" expectations.

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"Homebuilder had sceptics, or critics who said nobody would take it on," Mr Morrison said.

"Not only did they take it on but they have taken it on far beyond our expectations. Just shy of 82,000 applications. This is a pipeline of work of some $18 billion."

Mr Morrison said the residential building and construction industry was facing a "chasm" at the end of September, and now it has almost two years' worth of work.

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CEO of Master Builders Australia Denita Wawn said the impacts of the program were far more widespread than simply paying the wages of trades on site.

"The residential building industry has a three times multiplier effect of economic activity, the biggest of any industry," Ms Wawn said.

"So this is not just saving the jobs of our industry, it's also saving the jobs of the building supply company.

"It's also saving those guys selling the bacon and egg and the coffees at the local store."

Have you applied for the government's HomeBuilder scheme? We're keen to talk to you. email Stuart at smarsh@nine.com.au

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HomeBuilder explained: How to access building grants

What is the HomeBuilder grant?

The HomeBuilder grant is a one-off payment to owner occupiers to help them build a new home or substantially renovate an existing home.

The payment is designed not just to help people with their renovations, but to provide business for tradespeople in the wake of the COVID-19 pandemic.

Between June 4 and December 31 2020, the grant was $25,000. But that's all changed now.

What's the amount for the HomeBuilder grant now?

The amount for the HomeBuilder grant is now $15,000 – but there's a number of boxes you need to tick to ensure you are eligible.

First, the contract for the new build or renovation must be signed between January 1 and March 31, 2021.

Secondly, construction must commence within six months of the contract being signed. This is to stop businesses signing thousands of contracts and then taking years to complete them.

Are there any other criteria I need to meet?

Yes. If you are building a new home, there are limits on the property's value before you can access the grant.

In NSW, your property value must not exceed $950,000. In Victoria your property value must not exceed $850,000. In all other states and territories your property value cannot exceed $750,000.

If you are planning a substantial renovation, the value of the property cannot exceed $1.5 million.

You can see more eligibility criteria on the Treasury website.

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.