COVID-19 update - 11 June 2020

11 June 2020

Your latest regular update. We'll continue to bring you the information you need, as it's available. Today we've got an update on the $25,000 HomeBuilder grant, the most common eligibility questions we've received, how to register for the Find a Master Builder search, and a word of caution when terminating contracts to access the HomeBuilder grant.

This COVID-19 member update is unlocked and free to all in the interests of the building and construction industry. Did you know members have exclusive access to information and our team of experts who are on hand to assist in a range of ways? Need more specific COVID-19 advice relating to contracts, WHS, employment conditions or the relief measures? Members can contact us or learn how to join so you can speak with our experts and get free advice.

*Due to the changing nature of COVID-19, this information may no longer be correct. Please check state and federal government information for up-to-date guidance.

HomeBuilder grant enquiries soar

The $25,000 HomeBuilder grant, announced last week by the federal government has caused a flurry of enquiries for new home builders and major renovators, and a significant increase to foot traffic in display villages across the state.

To date, the federal government has received 4,240 enquiries from Queensland home owners interested in building a new home or undertaking a major renovation. And that's before the applications are even open.

Register for Find a Master Builder

We refer all homeowners who contact us looking to find a builder or tradie for their next new home build or renovation to our online Find a Master Builder search. We’ve already seen a spike in searches following last week’s announcement, so now is the time to be part of the search. 

Haven't opted in yet?
This is your best chance to receive a job referral from our website. To register, log in to the My Membership area of our website and follow the prompts to activate your profile.

HomeBuilder common eligibility questions

Q: Are townhouses and units included? 
A: Yes, providing construction work starts after 4 June 2020. Pre-built stock will not be eligible for the grant.

Q: Three months is too short a timeframe to start construction after a contract is signed. What is Master Builders doing about this? 
A: We are aware this can be an issue in some cases and have raised this with the Australian Government who are setting the rules. We're pushing for the three-month time frame to commence once building approval is received instead.

Q: I'm about to sign a legitimate contract to build a relative's home. Will they be eligible? I'm a licensed builder and they seem to meet all the criteria otherwise? 
A: Government advice is that there can’t be a ‘special relationship’ between the builder and the client and they must be at “arm’s length”. We are seeking further detail on what constitutes a ‘special relationship’.

Q: The $150,000 renovation spend will mean the average home owner can't afford this. What's Master Builders view on this? 
A: Current figures from the QBCC are telling us that the smaller end of the renovation market has actually boomed, with many members telling us they are busier than ever. However, we'll keep a firm eye on this – if members or the stats start to tell us otherwise, we'll absolutely act.

How to apply?

Further information regarding how to apply is yet to be released, but we are expecting the details to be finalised and we're hoping the application process will be up and running soon.

In the meantime, you can now register for more information as soon as it's available. Visit the Treasury website to register your interest in hearing more.

Read our statement

Ins-and-outs of mutual contract termination

If you've been asked by a current client to cancel a contract, with the view to re-contracting so they are eligible for the HomeBuilder grant, we urge caution.

While the gospel is to ensure you have an agreement in writing that covers the terms of any mutually agreed termination, we recommend you considering a few things before even getting to that state.

Keep in mind the grant legislation hasn't been finalised or released, so there's a risk in the unknown detail at this stage.

Firstly, the grant may not cover a new contract for work that was previously covered by a legally enforceable contract. Translation: there may be some fineprint in the legislation that prevents clients from doing just this – terminating the contract just so they can re-contract within the required time frame.

Your client could also decide to go with someone else and you'll lose the work. This risk is even higher if the legislation fine print means a new contract can't be entered into between the same parties (you and your client) if a contract existed before, but was terminated.

You also need to consider any levies or charges that have already been paid (such as Home Warranty Insurance premiums, QLeave levies), finance applications that will need to be amended and building approval lodgements.

This is just a snapshot of what needs to be considered. The situation is not clear cut and if you are a builder in this situation, we urge you to get in touch with our Members Legal team. The advice is free and could ensure you don't get yourself into a sticky situation.

Resources

We're trying to make it easier with loads of resources available:

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Help and advice

As usual, our staff are here to help. Whether you've got a question about protecting your business contractually, an employment or a health and safety question, our specialists are here and available to talk you through the options - get in touch.

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