11 Jun 2019
Chief Minister of the Northern Territory
The Territory Labor Government’s BuildBonus Scheme is driving a rebound in the residential construction market.
Master Builders NT attributes the renewed demand to BuildBonus.
Recent Fidelity Fund figures show very strong growth in the number of residential building approvals in the Territory for April and May.
There were 48 new home building contracts signed in May – more than double or 31 new homes since the effects of BuildBonus began in March.
There were equally strong figures for April, with 50 contracts signed that month.
BuildBonus was introduced as an economic stimulus package for the building sector while providing a leg-up for Territorians to get into their own homes.
The scheme provides a $20,000 grant for Territorians buying or building a new home in the NT to live in.
The grant is limited to the first 600 applications with 75 grants approved or pending.
BuildBonus is expected to support 1000 jobs and inject more than $380m into the NT economy.
The scheme is part of a suite of Territory Government housing incentives that are some of the most generous in the country:
The Territory Home Owner Discount, which provides a stamp duty concession of up to $18,601 (the equivalent of no stamp duty on the first $430,000 of a home’s value). It is targeted at people purchasing or building their first new or established home in the Territory, not just limited to first homebuyers. Since February, 124 Territory Home Owner Discounts have been approved or are pending.
The First Home Owner Grant, which provides a $10,000 grant to first home buyers buying or building a new home, and is accompanied by a $2,000 Household Goods Grant to purchase household furniture and electrical goods. 203 First Home Owner Grants have so far been paid this financial year.
Builders benefit from the Territory Government’s housing incentives with up to 78 subcontractors, suppliers and ancillary businesses such as landscapers and fencing companies supported by just one new home build.
One home build also supports up to 385 jobs.
Quotes from the Chief Minister, Michael Gunner:
“Our housing incentives create jobs. They generate work for businesses. They get more Territorians into their own homes quicker. They encourage people to move to the Territory.
“The latest figures show our initiatives are working. They show that the Territory Labor Government is working for Territorians – unlike the CLP who cut support for home owner programs.
“The economic injection of 48 new builds is about $27 million, which flows on to subbies, suppliers and the wider community.
“The benefits of government schemes like Build Bonus are being felt everywhere and there is no better time to buy or build a new home in the NT.”
Quotes from Master Builders NT Executive Director, Dave Malone:
“BuildBonus was a smart investment by the Territory Government. For a relatively small incentive payment, it has given the residential sector a major shot in the arm - and the benefits of that will flow right across our economy.
“Already, those 98 homes contracted in April and May can be expected to inject around $54m into the economy. And we expect more of the same in the months to come.
Quotes from Killarney Homes Director of Client Services, Andrea Moriarty:
"In the Northern Territory we have the best schemes in the country to get people into their own homes.
"These incentives have helped stimulate the building industry and kept many small local businesses going over this challenging time.
"The homes that Territory builders are building are top notch. There is titled land available. It is a great time to build."
Media contact: Andrea
Allen 0401 119467