What is the Home Builder Grant?
Home Builder is a government grant of $25,000 payable to eligible home owners that are going to build a new home or extensively renovate an existing home in 2020. Eligible home owners must build a new home valued under $750,000 or for renovators, spend between $150,000 – 750,000 on renovations of a property valued up to $1.5million.
When is the Home Builder Grant available?
The grant is only available on building contracts signed between 4th June 2020 until 31st of December 2020 and construction must begin within three months of the contract date.
Do I qualify for the scheme?
To qualify for the grant you must:
- Your earning must be below $125,000 as an individual for you 2018-2019 tax return, or if you are applying as a couple must be less than $200,000 for a combined income. After 1st of July 2020, they will base your income from the 2019-2020 tax return.
- The builder must be a licensed or registered builder – this is not eligible for owner builder.
- Be building a new property that you will live in as your home, meaning you cannot use HomeBuilder for an investment property.
- Begin construction on your new home or renovations within 3 months of building date. For example if the contract is dated 1 October 2020, your builder needs to have started construction on or before 1st January 2021.
- Own or be buying a property in an individual name and not a company or trust.
- Be an Australian citizen, this is not available to non residents, permanent residents or New Zealand Citizens.
If I am a first home buyer, am I still eligible for the FHOG as well as this Homebuilder grant?
Simple answer – yes.
What is not included in the HomeBuilder scheme?
- Building or renovating an investment property.
- Building a new home which has a combined land and house value of over $750,000
- Building something not connected to the home, for example: a swimming pool, tennis court, outdoor spa, sauna, shed, garage or granny flat.
Why is the HomeBuilder grant happening?
Treasury is forecasting a shortfall of 30,000 new dwelling commencements for the second half of 2020. The grant is to help the housing construction market and residential building industry maintain momentum and to sustain its workforce after the COVID-19 pandemic restrictions ease. Prime Minister, Scott Morrison said “This investment isn’t just about helping Australians bring their dream home to life, it’s about creating jobs and helping support the more than 1 million workers in the sector including builders, painters, plumbers and electricians across the country.”