The Australian Government is currently offering a $25,000 ‘HomeBuilder’ grant to build a new home or start a major renovation. The near-$700 million federal government housing package is aiming to boost the economy and act as a lifeline to the home construction industry. The Government is hoping that the grant will help to build around 30,000 homes by Christmas.
The grant will be available to people on middle incomes to build new homes or complete major renovations valued between $150,000 to $750,000.
Under the conditions of the grant, building contracts must be signed between the 4th June 2020 and 31st December 2020, with construction to begin within 3 months of the contract date.
The grants will be means-tested. Singles who earned up to $125,000 the previous financial year and couples who earned up to $200,000 will be able to access the HomeBuilder scheme.
The HomeBuilder scheme will work alongside the existing first homeowner grants and stamp duty concessions, including the federal Government’s first-home loan deposit and super saver scheme.
To meet the eligibilty requirements for the HomeBuilder grant, you must:
Meet the income testing
Singles that are applying must fall under the $125,000 per year income cap, or if you are applying as a couple the combined income must be below $200,000.
Sign a building contract after 4th June 2020 and before 31st December
This must be through a licensed or registered builder. You aren’t able to apply for the grant if you are an owner builder or signed a contract earlier in the year.
Be building a new house
The total value of the property (house and land) is cannot be more than $750,000. You cannot use HomeBuilder on an investment property or granny flat.
Be buying an off the plan apartment or townhouse.
The requirements around the contract are still the same for off the plan purchases. You must have signed a contract to buy on or after the 4th June 2020 and on or before the 31st December 2020. Construction will need to commence no later than 3 months after the contract is signed. If construction commenced prior to the 4th of June then you will not be eligible for the grant.
Substantially renovate the existing home that you live in
Homeowners must spend between $150,000 and $750,000 on a renovation contract to be eligble for the grant, however the value of your home (house and land) can not be valued at more than $1,500,000. The renovations need to “improve the accessibility, livability and safety” of your home and cannot be used to build things outside of your home like a swimming pool, tennis court or sheds.
Begin construction of your new home, or renovations within 3 months of the building contract date.
Houses under construction prior to the 4th of June are not eliglble for the HomeBuilder grant. Construction of your new home or renovation must commence within 3 months of signing the contract. For example, if the contract is dated 10th of July 2020, your builder needs to have started construction on or before 10th of October 2020.
The HomeBuilder scheme is only available to Australian Citizens and not available to non-residents, permanent residents or New Zealand Citizens. You must also be purchasing the property in your individual name, not as a company or a trust.
More information can be found here:
https://treasury.gov.au/sites/default/files/2020-06/Fact_sheet_HomeBuilder_0.pdf
https://treasury.gov.au/sites/default/files/2020-06/HomeBuilder_Frequently_asked_questions_0.pdf
