Federal Govt monitoring HomeBuilder program

Builders work on a new house after Australia's central bank raised interest rates by 25 basis points to a six-year high of 6.25 percent Wednesday in an effort to head off inflationary pressures in Melbourne, 08 November 2006. WILLIAM WEST/Getty Images

Australian federal government is monitoring its HomeBuilder program, which provides grants of $25,000 for new homes and major renovations, amid reports some people may miss out because of a construction backlog.

Under the current settings, home builders must begin construction within three months of signing a contract to be eligible for the federal government payment.