Delayed Relief for Struggling Builders Causes Concern in WA

A residential builders’ lobby group in Perth has expressed frustration over the delayed distribution of the state government’s interest-free support facility for struggling builders, raising concerns about the financial stability of several members. The program, announced over four months ago by the Small Business Development Commission, aimed to provide loans of up to $300,000 to builders facing challenges in completing stalled projects. However, the process has faced significant delays, with applicants left in the dark about assessment and payment timeframes.

Jason Janssen, chair of the Home Builders Action Group, highlighted the urgency of the situation, noting that the recent collapse of Collier Homes may just be the beginning of a larger issue in the industry. He emphasized the pressures faced by builders awaiting financial support, with some on the verge of financial collapse due to escalating costs and delayed assistance.

Commerce Minister Sue Ellery previously indicated that funds were anticipated to reach builders shortly, with the formal application process opening in mid-March. However, the slow pace of implementation has raised concerns about the viability of small builders and the impact on the construction sector in Perth.