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Federal Treasurer Josh Frydenberg has committed to helping “thousands more” Australians on the property ladder sooner in his Budget — but hopes the HomeBuilder grant would be extended in Victoria have been dashed.

Budget papers affirm the tax-free $25,000 grant for those building homes costing up to $750,000, and spending $150,000-$750,000 on renovations, will only be available where contracts are signed by December 31.

Building industry groups had called for HomeBuilder to be “expanded and extended” for Victorians, whose property plans were forcibly put on hold by tough COVID-19 restrictions.

Urban Development Institute of Australia Victorian chief executive Danni Hunter told the Herald Sun this was crucial to making sure those living in the state hit hardest by the pandemic “do not miss out”.

And Master Builders Victoria chief executive Rebecca Casson warned droves of Melbourne builders would be facing a challenging 2021 as they tried to recoup income with fewer projects ahead, creating a need for HomeBuilder to continue into next year.

Melburnians were banned from physically attending display suites for almost two months up until September 28, and many renovation projects are still sidelined by the city’s lockdown.

Budget papers show $680m has been allocated nationwide for HomeBuilder, which is subject to income and commencement requirements.

They describe the grant as being “designed to encourage those who … understandably pulled back from undertaking a new build or rebuild when the COVID-19 pandemic hit, to enter the market and keep the construction pipeline flowing”.

The papers also confirmed an earlier government commitment to extend the First Home Loan Deposit Scheme into 2021, with 10,000 extra places reserved for first-home buyers choosing new builds.

It is estimated the measure will generate $800m for the economy by stimulating housing construction activity.

Successful applicants can buy a home on a deposit as low as 5 per cent without paying hefty lenders’ mortgage insurance, with the government guaranteeing up to 15 per cent of the loan.

Almost 20,000 Australians have accessed the scheme since it started in January.

Announcements made last week also indicated the purchase price cap would be raised from $600,000 to $850,000 in Melbourne, where realestate.com.au puts the median house price at $750,000.

In his Budget speech, Mr Frydenberg said the FHLDS would “help thousands more Australians achieve home ownership, and support thousands of jobs in the construction industry”.

He also announced the government would enable “an additional $1bn of low-cost finance to support the construction of affordable housing”, on top of $4.6bn provided annually in rental assistance.

Support for landlords was noticeably absent, despite Budget papers acknowledging rents had “experienced a record-sharp decline, driven by weak demand and eviction moratoriums”.

Melbourne’s residential eviction moratorium was extended to March 28, 2021, in response to the city’s second COVID-19 wave.

https://www.realestate.com.au/...