Western Australia is stepping up to address the challenges in its construction sector with an expanded initiative aimed at helping residential builders complete homes that have been left unfinished for over two years. The Cook Government’s Builders’ Support Facility, a $10 million loan program, is being extended and modified to provide much-needed financial relief to the industry. This move comes at a critical time, as delays, disruptions, and rising costs have left many builders and homeowners in a state of limbo.
The Builders’ Support Facility, first introduced in January, was designed to offer interest-free loans of up to $300,000, with a cap of $60,000 per property. These loans are intended to assist builders who have been struggling to complete homes that have been under construction for more than two years. The first round of the program saw $5.7 million allocated to eligible builders, leading to the completion of 97 homes. However, with many more homes still unfinished, the government has decided to extend the program and update its eligibility criteria to ensure that more builders can access the remaining funds.
The updated criteria for Round 2 of the program now allow for a broader range of builders to apply. To qualify, builders must have been continuously operating in Western Australia since July 2020, and they must have at least one home that has been under construction for two years or more. This extension of the timeframe means that builders who were not eligible in the first round may now be able to access the loan facility. Additionally, successful applicants from the first round are eligible to apply again, meaning that some builders could receive up to $600,000 in support.
The government’s decision to extend and expand the program is seen as a necessary step to address the ongoing issues in the residential construction sector. Builders have faced significant challenges over the past few years, with supply chain disruptions, labour shortages, and the rising costs of materials putting immense pressure on their ability to complete projects. Fixed-price contracts have further exacerbated these challenges, leaving many builders in precarious financial situations. The Builders’ Support Facility is designed to provide a lifeline to these businesses, enabling them to complete their outstanding projects and deliver homes to waiting families.
The impact of the extended program is expected to be significant. With the additional support, more homes that have been stalled due to financial constraints will finally be completed, allowing families to move into their long-awaited properties. The program also provides a much-needed boost to the residential construction industry, which plays a crucial role in the state’s economy. By helping builders navigate these challenging conditions, the government is supporting not only the construction industry but also the broader housing market in Western Australia.
Premier Roger Cook emphasised the importance of the program, stating that it would help more Western Australian families move into their homes sooner, while also providing relief to builders facing delays. He highlighted the government’s commitment to easing the pressure on the housing market and getting people out of building limbo. The program, he said, supports jobs and ensures that more homes are completed, benefiting the entire state.
Treasurer Rita Saffioti also spoke about the challenges that builders have faced, noting that the increased costs of fixed-term building contracts have caused significant disruptions. She praised the Builders’ Support Facility as an innovative solution that has already assisted in the completion of nearly 100 homes. The extension of the program, she said, would enable even more families to move into their homes sooner than they otherwise would have.
Commerce Minister Sue Ellery echoed these sentiments, highlighting the importance of helping builders complete outstanding projects. She pointed out that the expanded initiative would benefit not only homeowners but also the building businesses and the wider residential construction industry. The program, she said, is about getting people into their dream homes and supporting the industry that makes it possible.
Housing Minister John Carey added that the government is doing everything it can to boost housing supply across the state. He referenced the government’s record $3.2 billion investment in housing and homelessness measures, which includes important policy reforms like the Builders’ Support Facility. By expanding and extending the program, he said, the government is further supporting the home building and construction industry, ultimately getting more Western Australians into new homes.
The extension of the Builders’ Support Facility has been welcomed by industry leaders. Michael McGowan, Executive Director of the Housing Industry Association WA, commented on the difficult operating conditions that builders have faced over the past three years. He noted that delays, cost escalations, and a deficit of trades have created turbulence in the industry. The loan support provided by the Builders’ Support Facility, he said, is crucial for builders who are navigating challenging cash flow conditions. He stressed the importance of a healthy and sustainable building industry to support the state’s growing population and economic growth.
As the government moves forward with the extended program, builders are being encouraged to apply early. Applications for Round 2 will open shortly and will be available on a ‘first come, first served’ basis. Those who did not meet the eligibility criteria in the first round will have their applications automatically reassessed, ensuring that more builders have the opportunity to access the funds they need to complete their projects. All applications will be subject to probity and credit assessment, ensuring that the funds are allocated to those who can demonstrate a genuine need.
The Builders’ Support Facility represents a vital intervention by the Western Australian government at a time when the construction industry is under significant pressure. By extending and expanding the program, the government is taking a proactive approach to addressing the challenges faced by builders and homeowners alike. As more homes are completed and families are able to move into their properties, the benefits of the program will be felt across the state. This initiative is a clear demonstration of the government’s commitment to supporting the construction industry and ensuring that more Western Australians can realise their dream of homeownership.
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