Government HomeBuilder scheme puts almost $2B into Australian bank accounts

• The Federal HomeBuilder scheme has so far cost almost $1.9 billion as the government hands cash out to Australians building and renovating homes
• With over 75,000 applications for the program, this is almost double what the Treasury was predicting in mid-November
• The bulk of the grants come from Victoria, Queensland, and New South Wales, with WA close behind
• Housing Minister Michael Sukkar said the government now estimates that the HomeBuilder program will support $18 billion worth of residential construction projects
• The program was meant to end on December 31, 2020, but has been extended to March 31, 2021
• However, applicants signing building contracts after January 1, 2021, will receive a smaller cash handout

The Federal HomeBuilder scheme has so far cost almost $1.9 billion as the government hands cash out to Australians building and renovating homes.

This is $1.9 billion straight into the bank accounts of Australians in an effort to help curb the devastating effects of the COVID-19 pandemic. With over 75,000 homes across the nation applying for the grants as of the end of December, this is almost double what the Treasury predicted.

The bulk of the grants were awarded to Australians in Victoria, Queensland, and New South Wales, with almost 52,000 applications coming from new builds or rebuilds in those states alone.

Western Australia had 11,924 applications.

For reference, the Government was predicting in mid-November that the program would support around 42,000 housing projects in total for a cost of roughly $920 million.

Housing Minister Michael Sukkar said the government now estimates that the HomeBuilder program will support $18 billion worth of residential construction projects.

“HomeBuilder was designed immediately to inject confidence and encourage buyers back into the market to offset the devastating effects of the pandemic on the residential construction industry,” Minister Sukkar said.

“On all counts HomeBuilder has more than achieved this objective, and it has kept hundreds of thousands of tradies in work who would have otherwise been facing the unemployment queue,” he said.

The HomeBuilder program initially offered a single $25,000 cash grant to applicants building a new home or significantly renovating an existing one.

The program was supposed to end at the end of 2020 but was extended in late-November to March 31, 2021. However, at the end of December, the size of the grant was cut to $15,000 instead of $25,000.

This doesn’t mean that people who applied for the grant in 2020 but have not started building yet will receive a smaller grant; as long as building contracts were signed between June 4, 2020, and December 31, 2020, the $25,000 is still available.

Only those signing their building contracts between January 1, 2021, and March 31, 2021, will receive the smaller amount.

In both instances, construction of the building project needs to begin within six months of signing the building contract for the applicant to still be eligible for the handout.

“Extending HomeBuilder ensures there will be a steady pipeline of construction activity through to 2022 to lock in this momentum,” the Housing Minister said.