The HomeBuilder program has been announced to help drive economic activity across the residential construction sector by providing grants of $25,000 to eligible owner-occupiers for new home construction and substantial renovations.
Support to build or renovate your home
If you’re looking to build a new home, complete a knock-down rebuild or to substantially renovate your existing home, you may be eligible to apply for a Government grant of up to $25,000 to put towards construction costs.
The HomeBuilder program will complement existing support measures, such as state-based first home-owner grants and stamp duty concessions. It is also accessible in conjunction with the First Home Owner Super Saver Scheme and First Home Loan Deposit Scheme. The good news is, you don’t need to be a first home owner to apply for the grant, so if you’re not eligible to participate in any existing schemes, this program might provide
you with support.
To be eligible for a grant, the following eligibility criteria must be met:
AGE AND CITIZENSHIP
- You must be an Australian citizen
- You need to be aged 18 years or older
INDIVIDUAL INCOME CAPS
Your income must be below one of the two caps below:
- $125,000 per annum for an individual applicant based on your latest tax return (either 2018/19 or 2019/20), or
- $200,000 per annum for a couple based on both individual’s latest tax returns (either 2018/19 or 2019/20)
DATE OF CONTRACT AND CONSTRUCTION
- The building contract must be entered into between 4 June 2020 and 31 December 2020
- Construction must commence within three months of the contract date
GRANT TO BUILD A NEW HOME – REQUIREMENTS
- The new home must be occupied as a principal place of residence
- The completed value of the new build (land and property) cannot exceed $750,000
- This criteria applies where vacant land is purchased either before or after 4 June 2020, with a contract to build entered into after this date
GRANT FOR SUBSTANTIAL RENOVATIONS – REQUIREMENTS
- Substantial renovations to an existing principal place of residence must have a commercial contract price between $150,000 and $750,000
- Renovations include where a property (house and land) is already owned and a knock down rebuild is completed (where the new build cost is capped at $750,000)
- Pre-renovation value of the property must not exceed $1.5 million
- Renovations must improve accessibility, safety or liveability and cannot include additions such as swimming pools, spas, sheds or stand-alone garages
USE OF PROPERTY
- THE HOME MUST BE USED AS YOUR PRIMARY PLACE OF RESIDENCE
- The new or renovated dwelling cannot be intended for use as an investment property
COMPANIES, TRUSTS AND OWNER-BUILDERS
- Not available to companies or trusts, including SMSFs
- Not available to owner-builders
You’ll be asked to provide:
- proof of identity
- a copy of a signed and dated contract
- a copy of your builder’s registration or licence
- a copy of your latest tax return (either 2018/19 or 2019/20), and
- other documents such as Council approval, contracts, occupation certificates and valuations
- All contracts and agreements must be entered into at arm’s length, which means conditions such as the price and scope of works must be commercial, rather than favourable because of your relationship with another party involved
- All building and renovation work must be carried out by a registered or licenced contractor and named as a builder on the building licence or permit
- Unlike some other Commonwealth and State-based schemes, there is no requirement that you need to be a first home buyer
To find out more about this program and whether you might be eligible, you should contact us today, or access further information from the below sources:
- Treasury Fact Sheet: HomeBuilder
- Treasury Fact Sheet: HomeBuilder – FAQs
- The state revenue office in your location – see below.
NSW – revenue.nsw.gov.au
VIC – sro.vic.gov.au
TAS – sro.tas.gov.au
WA – finance.wa.gov.au
SA – revenue.sa.gov.au
NT – treasury.nt.gov.au
Wealthness Pty Ltd ABN 13 231 248 112 [t/a Better Financial Planning Australia] is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL No. 236523. It is important to be aware that Better Financial Planning Australia is not authorised by Infocus to provide advice relating to credit services or property advice. Infocus is not responsible for any advice outside of the scope of this authorisation and should you wish to act on any of this general information, please first seek professional financial advice.
Wealthness Pty Ltd t/as Better Financial Planning Australia will endeavour to update the website as needed. However, information can change without notice and Wealthness Pty Ltd t/as Better Financial Planning Australia does not guarantee the accuracy of information on the website, including information provided by third parties, at any time.
This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission.
Wealthness Pty Ltd t/as Better Financial Planning Australia does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, Wealthness Pty Ltd t/as Better Financial Planning Australia and its employees do not accept any liability for any error or omission on this website or for any resulting loss or damage suffered by the recipient or any other person.
Wealthness Pty Ltd (ACN 613 313 250) [t/a Better Financial Planning Australia] Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL Licence No. 236523. Source: MLCJUNE 7, 2020