Blog/News - Property-Building-Government Incentives
WA Property Articles
COVID-19 Government Building Industry Stimulus Packages
Due to "COVID-19" during "2020" the Government will release various housing stimulus packages for people who "may qualify" for a financial incentives. Note: All stimulus packages will be subject to various terms, conditions and criteria refer to websites/links for further information, as these posts are a guideline only. This BLOG/NEWS will be updated as more information is released. Disclaimer: It is the responsibility of individuals to carry out their own due diligence in relation to all information and articles posted below.
For released updates and current information:
"MBA - Media Release" 19 June 2021
Home Builder Construction Time-frame Extended
The Federal Government has announced the expansion of housing programs that are helping more people to own their first home provides and strengthening economic recovery.
“The release of 30,0000 new places in the highly successful First Home Loan Deposit Scheme, New Home Loan Guarantee and the Family Home Guarantee will boost the economic security of thousands more people, including single parents, and continue to accelerate the recovery,” Denita Wawn, CEO of Master Builders Australia said.
“We know that the deposit gap is the greatest barrier to people owning their first home. Right around the country we are witnessing the success of the Government’s housing policy measures to help people to bridge this gap,” she said.
“The Family Home Guarantee will mean that thousands of single custodial parents, the vast majority of whom are women, can access the life-changing benefits of homeownership. We want to this measure passed by the Parliament without delay,” Denita Wawn said.
“Providing more people with the support to make the step up to owning a home is also fundamental to a stronger economy which benefits the whole community,” she said.
“Lifting the price caps for these schemes will also make them more accessible to more people and that’s a very good outcome,” Denita Wawn said.
“With every 1 dollar spent in building new housing resulting in 3 dollars benefit for the wider economy, it is clear why the Federal Government’s measures are having such a strongly positive effect,” Denita Wawn said.
"MBA - Media Release" 17 April 2021
Thousands of people can now be sure that they will receive HomeBuilder grants with the Federal Government’s extension of the construction start date.
Denita Wawn, CEO of Master Builders Australia said, “The scale of the HomeBuilder success - more than 120,000 HomeBuilder applications have created huge pressure on the supply chain with Master Builders Australia’s survey of the industry showing that 70% of builders are being hit by delays and cost increases for key trades and building products.”
“This also created the risk that thousands of HomeBuilder applicants could miss out on the grants because builders could not meet the construction start date requirements,” she said.
“Thanks to this move by the Federal Government, thousands of HomeBuilder applicants around the country can now breathe a huge sigh of relief,” Denita Wawn said.
“This will help builders and tradies maximise and manage the extraordinary success of HomeBuilder,” she said.
“The Federal Government showed strong leadership to introduce HomeBuilder when Covid lockdowns meant thousands of builders and tradies faced a valley of death with no forward work,” Denita Wawn said.
“Thanks to HomeBuilder those businesses and jobs were saved. It’s been one of the most effective government interventions ever,” Denita Wawn said.
"MBA - Media Release" 29 November 2020
KEY CHANGES ANNOUNCED TODAY BY THE FEDERAL GOVERNMENT
Today, the 29 November 2020, the Government announced an extension to the HomeBuilder program to 31 March 2021 and have noted the following changes:
A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
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.
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, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
A change in licensing requirements and registration for builders and developers, as below:
Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Other than the above, the 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.
"MBA - Media Release" 20 October 2020
Premier boots builder boost goal in grand final week
Premier Mark McGowan’s announcement today to extend the construction period for the highly successful Building Bonus stimulus by six months has not only kicked a goal but delivered a best on ground performance in AFL grand final week for all West Australians. Master Builders WA executive director John Gelavis said the announcement today was critically important because the $24billion building and construction industry is about to enter one of its busiest periods due to the massive $27.1billion infrastructure and capital works program announced in the State Budget and the spike in home building work commencing in the next few months. “This extension will allow for the levelling of the construction timeframe, which will support the industry in being able to build the highest quality homes in the required timeframes and do this in safest possible way,” Mr Gelavis said. “When we pitched the idea to government in March this year, we were delighted to see how successful the Building Bonus program had become in building a pipeline of work for the industry. However due to the tight timeframe our members raised concerns around safety and the availability of subbies, so we are glad the Premier has listened to our calls for an extension and acted. “The housing industry in WA has declined more than 60 per cent since 2014 to disastrous levels and was too important to the state economy to be allowed to collapse under the weight of the COVID-19 pandemic. This package has rescued many businesses such as mum and dad builders, large builders, subbies, manufacturers, suppliers and apprentices and will keep thousands of people in work and thousands of West Australian families financially secure. “We now have a need for speed from many of the support agencies to make this truly successful, including local governments to ensure building and planning approvals, land titling and finance applications are dealt with quickly. “The State Government has really backed the West Australian building and construction industry to not only remain operational but be a key driver in rebuilding the economy and creating economic activity for the state. “A strong building industry means a strong WA.” For more information please contact:
• John Gelavis, Executive Director – w: 9476 9800 m: 0428 884 392
Government of Western Australia Media Release:
Building Bonus extension to provide WA job certainty - 20/10/2020 9:30 AM
More Western Australians to access $20,000 Building Bonus grants
Homebuilders now have an additional six months to commence site works
Pipeline of construction work to continue through to 2022, providing certainty to industry
Key component of $5.5 billion WA Recovery Plan
Western Australia retains the title as most affordable state for buyers and tenants 4 June 2020
REIWA PERTH PROPERTY AND WA REAL ESTATE (CURRENT TRENDS)
MBA MEDIA RELEASE HOMEBUILDER & BUILDING BONUS STIMULUS UPDATE 17 July 2020
FEDERAL HOMEBUILDER PACKAGE
Since the announcement of the Federal Homebuilder package, Master Builders has been constantly engaged with the Federal Treasury Department (Treasury) on raising questions with the criteria to provide clarification for our members and maximise the benefits of the HomeBuilder stimulus measures. Many questions have been raised with Treasury on various scenarios and circumstances. Key issues included the timing arrangements, valuations and financial thresholds, defined terms, and the applications processes. Questions raised by Master Builders can be accessed below;
Treasury has responded, answering many of our questions. The website has been updated and the Frequently asked Questions can be found by pressing the link below; Several key points have been clarified and appropriate changes made;
Read the Treasury updated answers here;
The Federal Government has announced key refinements to Home Builder
Time allocation has been made for home buyers to arrange their finance approvals, building approvals and able to meet other legal requirements before work is required to commence, rather than the fixed three-month time frame initially announced.Full clarification that a sales contract for a home purchased off the plan will be eligible in the same way as a building contract.Process alignment with the current timing of payments for first homeowner grants for new homes.If you sign the sales contract to buy the off-the-plan dwelling between 4 June 2020 and 31 December 2020 (inclusive) and construction commences on or after 4 June 2020 and no later than three months after the contract is signed, then the property purchase may be eligible for HomeBuilder. However, if you sign the contract to buy the dwelling after 4 June 2020, and construction on the dwelling commenced before 4 June 2020, then it does not qualify for HomeBuilder. HomeBuilder is not intended for properties where the applicant does not own the property (both dwelling and land) – such as where a tenant lives at a property owned by somebody else, or where a person lives in a dwelling that they own and that is situated on land owned by somebody else (such as in land-lease communities).New builds – grants will be paid after construction has commenced and the first progress payment has been made to your builder;Substantial renovations – grants will be paid after construction has commenced and at least $150,000 of the contract price has been paid in respect of the renovation;For off-the-plan /new home purchases – grants will be paid after the applicant(s) name is registered on title; and in Tasmania, the timing of the grant payment may be different in certain circumstances and you should refer to the State Revenue Office of Tasmania website for further information.HomeBuilder can only be used for one contract per applicant. For renovations, the building contract must be valued between $150,000 and $750,000.
All States have been working together to develop consistent guidelines and the application form.
It is expected that banks will be able to apply for applicants as per FHOG processes in jurisdictions. Conversations between Government and the banks is continuing.
Hopefully application processes for most states will go live soon.
Several questions are still to be answered, and Master Builders is continuing our discussions with Treasury to provide certainty for members and their clients.
STATE GOVERNMENT BUILDING BONUS PACKAGE
In addition, our ongoing discussions with the State Government regarding the Building Bonus is to ensure the stimulus measures continue to have the desired effect, a welcomed increase in building activity, throughout the recovery period and into 2021.
Master Builders had raised several key questions and scenarios on the State Building Bonus on behalf of members. State Revenue (RevenueWA) have provided answers which can be accessed below.
MBA - Media Release - State Housing Stimulus Package a Gamechanger - 7 June 2020
($444m housing stimulus package will offer an amazing building bonus of $20,000 for all new builds in conjunction with the existing state $10,000 First Home Owner Grant and the Commonwealth $25,000 HomeBuilder scheme announced this week. When the existing state stamp duty concession for first home buyers is factored in, it creates a potential benefit of around $69,440. If you are not a first home buyer and qualify for HomeBuilder, you could receive $45,000 for a new build, which is outstanding)
*Subject to Terms/Conditions
MBA - Media Release - Federal HomeBuilder Scheme - 3 June 2020
(2020 Grant of $25,000 to build New Home or Substantially Renovate Existing Home)
*Subject to Terms/Conditions
MBA - Media Release -WA State Housing Stimulus Package "A Gamechanger" - 7 June 2020
WA government announces $444 million housing stimulus
*Subject to Terms/Conditions
*Subject to Terms/Conditions
ABC NEWS ARTICLE (4/6/2020) - CONSTRUCTION STIMULUS "RENOVATIONS"
*Subject to Terms/Conditions
NEW HOME BUILDER SCHEME: WHAT SCOTT MORRISONS NEW SCHEME MEANS FOR YOU - 4/6/2020
*Subject to Terms/Conditions
COVID19 - INDUSTRY UPDATES
COVID19 - INDUSTRY ISSUES - 28-5-2020
COVID19 - ARTICLES
URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA - WESTERN AUSTRALIA DIVISION INCORPORATED
Blog Article - 8th December 2018
WHEN NEXT UPLIFT WILL OCCUR
When discussing property market trends and predicting what is likely to happen in terms of market demand and housing prices moving forward, there is often the assumption the property market is cyclical and if we are in a downward trend, it will move into an upward trend at some point.
Therefore, UDIA’s research team recently undertook an analysis of historical market cycle trends to see if we could more precisely predict the next property market upswing.
The team analysed Australian Bureau of Statistics (ABS) data on Western Australian dwelling commencements, building approvals and dwelling finance commitments over the last 30 years to get a true picture of how the current market downturn compares with previous market cycles.
The research found market cycles in WA have spanned between 4.5 to 8.75 years, with an average of five years from ‘trough to trough’ over the last 30 years.
What this tells us is, while the current downturn has extended for longer than many might have expected, it sits well within the average time range of historical market cycles.
Along with looking at the property market indicators, UDIA tracked the historical impact of mining exploration expenditure on dwelling commencement figures.
This showed there had been a distinct two year lag between an upturn in mineral exploration expenditure and a corresponding uplift in dwelling commencement figures in WA over the last 30 years. Therefore, based on current mineral exploration expenditure figures, we would estimate the next market upswing will occur within the next 12 months.
We can also predict the next peak in dwelling commencements across the state is likely to occur between mid-2020 and 2022.
It is very useful to have solid evidence indicating where we can expect the market to move in the coming months and years.
Anticipating the next upturn is extremely important to the state, given the health of the property industry is critical to the broader strength of the WA economy due to the significant contribution it makes to Gross State Product (GSP) and employment.
In fact, the construction industry makes up close to 13 per cent of our GSP and helps to sustain 224,500 jobs across the state.
Given all of this, UDIA would like to see government policy at all levels supporting the recovery in the property market to ensure our state’s continued prosperity.