HomeBuilder grant to support new house builds and renovations
June 12, 2020
The federal government’s $25,000 HomeBuilder grant will help Australians build new homes and complete renovations, however there are specific requirements to be eligible for the new program.
The HomeBuilder initiative is a time-limited, tax-free cash grant that has been designed to help the residential construction industry through the coronavirus (COVID-19) pandemic.
Eligible homebuyers and owner-occupiers can put the grant towards building a new home or substantially renovating their existing home, where the contract is signed between June 4 and December 31, 2020.
Homebuyers can take advantage of the HomeBuilder grant with existing state and territory first homeowner grants, stamp duty concessions and other grant programs.
The HomeBuilder grant can also be used with the federal government’s first home loan deposit scheme and first home super saver scheme.
Here is what you need to know to decide whether the HomeBuilder grant is right for you:
Who is eligible for the HomeBuilder grant?
The HomeBuilder program has a string of conditions that are important to consider before applying for the grant.
To apply for the HomeBuilder grant, homebuyers must be an Australian citizen aged 18 years or older.
The grant is means-tested, so applicants must meet one of the following 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.
For home builders, the value of the property, which includes house and land, must not exceed $750,000.
For home renovators, the value of the renovation should fall between $150,000 and $750,000 and only applies to existing properties (house and land) worth less than $1.5 million.
The grant only applies to homes that are primary residence of the applicant, and cannot be used on investment properties.
The grant can only be used on construction works that begin with three months of the contract date.
How to apply for the HomeBuilder grant
Anyone looking to apply for the HomeBuilder grant will need to apply through their state or territory government’s relevant authority.
You will be able to apply once your state or territory government signs up to the national partnership agreement with the federal government.
If you’re interested in the HomeBuilder grant, contact your relevant state or territory revenue office to find out more information about when and how to apply.
The relevant state or territory revenue office will distribute the grant directly to successful applicants.
Other HomeBuilder grant considerations
The grant can be used on all types of dwellings, including houses, apartments, house and land packages, and off-the-plan developments.
For homeowners looking to renovate, the renovations should improve the accessibility, liveability, and safety of your home, and must be completed by a licenced or registered builder.
For example, the grant cannot be used to build a tennis court, pool or shed.
Speak to the property experts at LDB
If you have questions about the HomeBuilder grant and what it means for you, contact the experienced real estate and property team at LDB.
To speak with one of our property specialists, give us a call on (03) 9875 2900 or send us a message via the contact form below.