The HomeBuilder program, a $25,000 grant, is available to eligible owner-occupiers (including first-home buyers) wanting to substantially renovate their existing home or build a new home. This grant is tax-free and is available for contracts signed between June 4 2020 and 31 December 2020 with construction to commence within 3 months of the contract date. The government hopes that this will lead to between 25,000 and 30,000 new builds or significant renovations as they anticipate that the housing industry will go through a tough period following the economic fallout from COVID-19.
To be eligible for HomeBuilder, you must meet the following criteria:
- You are aged 18 years or older
- You are an Australian citizen
- This is your primary place of residence
- You meet one of the following two income caps: $125,000 per annum for an individual applicant based on your 2018-19 tax return or later or $200,000 per annum for a couple based on both 2018-19 tax returns or later
- You enter into a building contract between 4 June 2020 and 31 December 2020
- If you build a new home, the property value (house and land) must not exceed $750,000
- If you renovate your existing home, the renovation contract must be between $150,000 and $750,000, and the value of your existing property (house and land) does not exceed $1.5 million.
The Fine Print
- If you already own land but have not yet signed a contract to build you are eligible for this grant providing you meet the above criteria
- All types of dwellings (house, apartment, house and land, off the plan etc.) are eligible again, providing you meet the above criteria
- Renovations must improve the accessibility, liveability and safety of the property. This will exclude tennis courts, pools and sheds.
- Renovations must be completed by a licensed or registered builder
- Acceptence will be backdated to 4 June 2020 once the National Partnership Agreement is signed by both the commonwealth government and the states
- First home buyers are able to use this grant in conjunction with the other schemes that are available to them (stamp duty concessions, First Home Owner Grant)
- Owner-builders and investment properties are not eligible.
You can register your interest in the HomeBuilder program here.
As always, Seek Financial are here to help! If you would like to have a chat about how you can take advantage of the HomeBuilder grant and improve your home or build your dream home or first home, please don’t hesitate to get in touch.