COVID-19 update - 3 August 2020

3 August 2020

Today we'll focus on how your customers apply for the HomeBuilder grant, changes to the JobKeeper Payment, extensions to development approvals and the recently announced catalytic infrastructure program.

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 applications now open

It's official! Home owners and home buyers can now apply for the $25,000 HomeBuilder Grant.

Applications are now open for the Grant, which is available for people (owner occupiers) building or buying a new home or substantially renovating a home.

The criteria

Amongst other eligibility criteria, contracts must be signed between 4 June 2020 and 31 December 2020. Construction must commence after 4 June and no later than three months after the contract is signed. An extension may be granted in certain circumstances outside the control of the builder, such as a delay in council approvals. Owners will need to supply a statement confirming the reason for the delay as part of their application.

We understand that some aspects of the application process are not practical or clear and will continue to work with the government to ensure that they are resolved quickly.

How to apply

It is important to note that applications must be made by the home owner.

To complete the application process, the owner must have evidence that construction has started and a progress payment made or in case of off-the-plan, construction is complete and the title transferred.

This means that owners cannot use the grant as a deposit and lenders may not consider it as a factor in determining eligibility. You should ensure that any contract you sign is not contingent on the owner accessing grant.

Eligibility questions

All the information you need to understand eligibility requirements for the HomeBuilder grant, the Regional home building boost and the  First Home Owners' Grant is available on the Queensland Government's website.

JobKeeper: changes you need to know about

The JobKeeper payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.

Payment rate reduced

The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to:

  • $1,200 per fortnight from 28 September 2020
  • $1,000 per fortnight from 4 January 2021.

From 28 September 2020, lower payment rates will also apply for employees and business participants that worked fewer than 20 hours per week.

Eligibility changes from 28 September

Businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover (rather than projected GST turnover).

Businesses will also be required to reassess their eligibility with reference to their actual GST turnover in each of the quarters starting March 2020 to remain eligible. The eligibility remains as a 30% reduction in turnover for businesses with less than a 1 billion turnover.

Businesses who have recently met the 30% reduction trigger can still apply for JobKeeper moving forward.

Other eligibility rules for businesses and not-for-profits and their employees remain unchanged.

Need advice or assistance?

Our team of employment & wages experts are on help to assist members. Get in touch at 1300 30 50 10 or via email.

Updated health disclosure forms

We recently updated two of our COVID-19 health and safety resources. Our client and visitor health disclosure forms now comply with the most recent rules, with both forms now referencing current COVID-19 hot spots and include a link to the full list of hot spots on the Queensland Government website.

Six month extension granted for approved development

The Queensland Government recently announced a 6-month extension to timeframes for undertaking approved developments, which should assist with COVID-19-related delays.

Development approvals that come into effect between the date of the extension notice and 31 October 2020 will have an additional six months to undertake approved development.

$200 million Building Acceleration Fund

Over the weekend the Queensland Government announced a $200 million catalytic infrastructure initiative that will assist councils and developers to construct roads, water distribution, sewerage/wastewater, and storm water infrastructure activities.

Participants in the fund will be required to co-invest 10 to 50% of the total infrastructure cost, depending on the scale of the project. Government’s contribution will be in the form of an interest-free loan repaid over 15 years.

While these activities won't necessarily provide an immediate benefit for builders and tradies, they will accelerate projects that unlock development and in turn increase construction activity and jobs in the longer term.

Resources

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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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