HOUSING — BUILDING BONUS SCHEME
70. Hon Dr STEVE THOMAS to the minister representing the
Minister for Finance:
Ten
billion bucks! I refer to the state government's $117 million building
bonus scheme, announced on 7 June 2020, for the provision of a $20 000
grant to new home buyers with an estimated processing period of eight weeks.
(1) What calendar
month grant applications is the Department of Finance currently processing?
(2) If the
applicant must have had financial approval, signed a contract and started
construction to the point of having earthworks or demolition commenced, is this
scheme more of a cashback scheme than a stimulus scheme?
(3) If no to (2),
why not?
(4) If no to (2),
how can an applicant incorporate the grant into their decision to proceed if
they have already signed a contract to proceed?
(5) Is the grant therefore unable to be considered by
a financial institution when considering a funding application?
Hon
STEPHEN DAWSON replied:
I thank the
Leader of the Opposition for some notice of the question.
(1) The
Department of Finance is currently assessing applications submitted before 17
December 2020.
(2) The building bonus is an important stimulus measure
introduced as part of the WA recovery plan. It was designed to create a strong
pipeline of work and create certainty for the building industry as Western Australia recovered from the economic
impact of COVID-19. To apply for the building bonus grant, an applicant needed to sign a new contract with a registered
builder between 4 June and 31 December 2020, with construction needing to commence within 12 months of the contract
date. Owner–builders were required to complete laying the
foundations of the new home on the land by 31 December 2020. The strong
performance of the housing
construction industry, as evidenced by our state's record low
unemployment rate and strong building approvals data, is proof that this
stimulus program has been incredibly successful in supporting the sector
through the uncertainty of the pandemic, as was intended when the policy was
introduced.
(3) See the answer
to (2).
(4) The building
bonus is not guaranteed to every applicant and will be paid only if the
applicant meets the eligibility requirements.
(5) The grant is unable to be taken into account by a financial
institution when considering a funding application, for the reasons
described in the answer to (4), which aligns with the federal government's
HomeBuilder program.