Property owners in danger of missing out on vital COVID-19 era cash grants through no fault of their own have won a reprieve, with the deadline to submit paperwork for the national HomeBuilder scheme extended.
Subject to agreement with the states and territories, Housing Minister Julie Collins says otherwise eligible applicants who would have missed the April 30 cut-off will now have until the end of June 2025 to provide supporting documentation.
The extension will only apply to existing, already-approved applicants who have formal approval for off-the-plan purchases or renovations.
With rate hikes and runaway Australian construction costs biting hard, the extra time would support those who had entered into financial commitments believing they'd secure grants but affected by supply constraints and delays, Ms Collins said on Sunday.
"Too many Australians stood to miss out on support they believed they would receive through no fault of their own," she said.
"This decision will not cost the budget but it will ease the burden on families right across the country who are relying on this grant."
The popular $25,000 handouts were issued during the pandemic but later came in for heavy criticism.
While stimulating the construction sector as they were designed to, the home builder and renovator payments went too far and contributed to "overheating" as costs hit record highs, according to experts.
A KPMG review of the HomeBuilder program done on behalf of Treasury in November found the external supply chain issues and state level construction grants also added fuel to the fire.
However Ms Collins said the extension would draw a line under the former government's mismanagement of the HomeBuilder program.
Lengthy delays had meant thousands of applicants who had purchased off-the-plan apartments stood to miss out because title documents that needed to be submitted to prove eligibility could not be issued until construction was complete, she said.
The Property Council of Australia welcomed the news.
Chief executive Mike Zorbas said the "new home aspect of HomeBuilder was a remarkably successful job saver and confidence booster during and after the most severe health related lockdowns in more than a century".
"Retaining the positive promise of a scheme we hope is never needed again, is thoughtful public policy," he said.
Master Builders Australia chief executive Denita Wawn said the average time to build a home had blown out from nine to over 12 months.
"The extension allows builders to ensure there's adequate time to deliver on projects during a time that has seen a perfect storm of pressures in the industry," she said.
The grants program was launched in June 2020, offering up to $25,000 towards new homes and large renovations. In 2021, $15,000 grants were introduced for eligible owner-occupiers.
During this period, the construction sector was plagued by acute labour, material and land shortages, with input prices lifting 17.3 per cent between June 2021 and June 2022, according to the Australian Bureau of Statistics.
More recent ABS data shows disenchantment with rising interest rates and the high cost of building has resulted in a more than 18 per cent slump in house approvals across Queensland in the 12 months to February.
