The HomeBuilder grant offers $25,000 or $15,000 to the homeowner building a new home or substantially renovating an existing home, depending on if contracts were signed between June and December 2020 or January to March this year.
As a result, there were 12 applications for new home dwellings in the Edward River Council region between October 2020 and March this year, compared to zero in the same period a year earlier.
‘‘There has been a increase in applications for new dwellings over the last six months as compared to the same period in 2019/2020,’’ a council spokesperson said.
“Fifty per cent of new dwellings are being undertaken by local builders, and 100 per cent of substantial dwelling alterations and additions are through local builders.
‘‘Local builders are undertaking a high percentage of residential building works.’’
Local construction businesses say the scheme has undoubtedly stimulated new business, but some have described the impact of the program as a double edged sword.
With the increase in demand, there is increased pressure on the building industry both locally and nationally.
Bernie Green from B Green Construction, who has been contracted mostly for renovations eligible under the scheme, said it has specifically created issues with access to resources.
‘‘We are busy building, and doing mostly renos,’’ he said.
‘‘It has created a boom, but with that has come with a difficulty to get materials.
‘‘It’s very difficult to secure certain types of timber.
‘‘Everyone (builders) is busy right across Australia, but we have a shortage of what we can get our hands on.’’
In recognition of those shortages, the Federal Government has recently announced strict timelines associated with the scheme would be extended.
When the scheme was announced, construction of new or renovated dwellings had to start within three months of a contract being signed.
It was later extended to six months, and this month extended again to 18 months due to ‘‘unanticipated delays’’ in the construction industry caused by COVID related supply constraints. It also reflects impacts due to natural disasters.
‘‘Extending the construction commencement requirement will smooth out the HomeBuilder construction pipeline, support jobs in the construction sector, and ensure that existing applicants facing difficulties in starting construction on their new builds and renovations are not denied a HomeBuilder grant due to circumstances outside their control,’’ federal treasurer Josh Frydenberg said.
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