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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2020-10-14 Daily Xml
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HomeBuilder Program

The Hon. D.W. RIDGWAY (14:40): My question is to the Treasurer. Can the Treasurer please update the chamber on any issues that have been raised with the government in relation to the implementation of the federal government's HomeBuilder scheme?

The Hon. R.I. LUCAS (Treasurer) (14:41): I am pleased to update the chamber in relation to the ongoing success of the commonwealth government's HomeBuilder scheme, combined with the First Home Owner Grant scheme here in South Australia. There is a $25,000 federal grant and a $15,000 state grant, so for some first new home owners there is potentially a grant of $40,000.

I have updated the house previously on issues that some stakeholders, in particular builders and potential home owners, have raised in relation to the tight time lines within the HomeBuilder scheme. To refresh members' memories, in particular there is the issue of the time period between the signing of a contract and the actual commencement of construction. As I have advised the house, we successfully negotiated some flexibility in relation to that so that the Commissioner of State Taxation has the capacity in certain circumstances to extend that three-month period up to six months.

In updating the chamber, it is clear that there are significant numbers of South Australians who are very interested in either just the HomeBuilder grant of $25,000 or the combined grants of up to $40,000, but builders are increasingly delaying the signing of the contract to get the maximum value of the three-month period between the signing of the contract and the commencement of construction. So there is potentially a logjam that's going to occur towards the end of the year. Of course, the industry will be going gangbusters—to use a very technical phrase—towards the end of the year and through the early part of next year as the full impact of the HomeBuilder grants and the First Home Owner Grants will be felt in new home construction here in South Australia.

In the very successful discussions we have had with the Master Builders Association, the Housing Industry Association and the UDIA—and we congratulate all of those associations for working very cooperatively with the government, my office and RevenueSA in the early negotiations that we have had about getting flexibility, and they have continued to put a position to the government. The MBA in particular and, as I said, other associations as well have worked cooperatively with us.

I forget the exact date, but I think it might have been Friday that I wrote to the commonwealth minister, on behalf of the government but also listening to the views of the stakeholders, asking whether or not the commonwealth government is prepared to give South Australia a blanket extension of six months in relation to this particular provision. We have currently negotiated that it's three months, but the commissioner has the flexibility on a case-by-case basis to extend it to six months. We have put the request to the commonwealth government—because this is their scheme—as to whether they will approve us giving a blanket exemption for a period of six months.

We understand that might be a difficult decision for the federal government, but nevertheless we think that what we are seeing here, in terms of the enormous demand for both the federal and state government grants, that it would make great sense in terms of the sensible processing of new home construction in our industry if the flexibility of having a six-month period rather than a three-month period was agreed to by the federal minister.

As I said, I think my letter was sent off on Friday (or in the last few days), and we anxiously await a response. I will be pleased when we get a response to update not only the house but also the broader housing sector and the South Australian community on whether or not we have been successful in negotiating that further flexibility, which would be of great benefit to all.

The PRESIDENT: The Hon. Mr Darley has a supplementary.

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