On the 4th June 2020, the Federal Government announced a new, time-limited scheme, dubbed “HomeBuilder” as a means to keep the 1 million Australians either employed by or engaged in the construction industry in their jobs and to mitigate potential losses to the nation’s property market as a result of COVID-19 and the subsequent recession Australia is facing.
Who is eligible?
The scheme is only open to Australian residents who are over the age of 18 and:
- Own an existing property that they plan to substantially renovate;
- Purchasing a new home that has never been lived in; or
- Building a brand new home.
Property owners who are planning to build or renovate an investment property will not be eligible for the grant.
If you are renovating a property, the amount spent on renovations needs to cost $150,000 or more. If you are purchasing a new home or building a new home, the total value of the property (including land) has to be $750,000 or less.
I am a first home buyer. Am I eligible?
Yes. Couples and individuals purchasing their first home are also eligible for the scheme and may also be eligible for both HomeBuilder and the applicable First Home Owner Grant in their state of residence.
How much money will I receive?
Eligible property owners will receive a grant of $25,000 after they have spent $150,000. The grant is paid per individual owner or couple who own together. First home buyers will also receive the grant of $25,000 and, in most cases, the $15,000 Queensland first home buyer grant as well.
What are the limitations?
Couples earning more than $200,000 per year and individuals who earn in excess of $125,000 per year will be ineligible for the grant, as will new builds over $750,000. While the total price of the renovation must be within the range of $150,000 to $750,000, the value of the property being built or improved must be less than $1.5 million.
Those who intend on building or renovating without the help of builders will also be ineligible for the scheme. Builders must have been registered or licenced prior to the announcement of the scheme on 4 June 2020.
I have started renovations. Am I eligible?
If you have a building contract dated 4 June 2020 or later, you are eligible. The grant is available for building contracts signed between 4 June 2020 and 31 December 2020, where work is due to commence within three months of the signing date.
Are improvements to my back yard included?
No. The grant is only applicable to improvements to the existing house or a completely new build. The installation of a swimming pool, tennis court or sauna or erection of a shed, for example, are not included in the $150,000 required spend.
I want to renovate my apartment. Will I receive the grant?
Provided you meet all the other eligibility requirements, all dwellings are eligible under the scheme, not just houses. Therefore, any apartments, house and land packages and off-the-plan dwellings are eligible under the scheme.
Is the grant tax-free?
Yes. The $25,000 will not be taxable.
When does the scheme commence?
The scheme will be open for applications shortly and will run until the end of 2020.
For more information on how to apply for the HomeBuilder grant, please contact us for an obligation-free chat.