The Australian Government has recently announced the HomeBuilder grant, which could give you $25k towards the building or renovation of your home. Here’s everything you need to know!
What is the HomeBuilder program?
The HomeBuilder grant program is designed as part of an economic stimulus package in the wake of the Covid-19 pandemic. The grant offers $25k to eligible homebuilders and homeowners towards the build of their new property, or renovation of existing property.
Interestingly, you don’t need to be a first home buyer to access the grant. It also works in conjunction with any other government schemes, such as the First Home Buyer’s grant. This means first home buyers could be eligible for the $15k First Home Buyer’s grant and the $25k HomeBuilder grant.
Who qualifies for the HomeBuilder grant?
People must meet the following criteria to be eligible:
- you are a natural person (not a company or trust);
- you are aged 18 years or older;
- you are an Australian citizen;
- your annual income (based on 2018/2019 tax returns or later) doesn’t exceed $125,000 per year for an individual, or $200,000 per year for a couple;
- you enter into a building contract between 4 June 2020 and 31 December 2020 to either:
- build a new home as your permanent residence, where house and land value is less than $750,000, or
- substantially renovate your home, where the renovation contract is between $150,000 and $750,000. In this case, house and land value must be less than $1.5 million.
- construction must begin within 3 months of the contract date
People wishing to build or renovate investment home are not eligible for the grant.
Knockdown and Rebuilds
If you own a house and land, but wish to knock down your existing home to rebuild, you may be eligible for the HomeBuilder grant. This falls under the ‘renovations’ category, therefore along with other eligibility criteria, you must show that:
- Your total house and land value pre-renovation is below $1.5 million
- Your renovation contract is between $150,000 and $750,000
As you already own the property, you wouldn’t be eligible for other grants such as First Home Owner, First Home Loan Deposit Scheme or First Home Super Saver Scheme.
House and Land Packages
People buying house and land packages are eligible for the HomeBuilder grant provided they meet all the eligibility requirements listed above. Specifically, the value of the house and land MUST be below $750,000.
If it’s your first home, you may also be eligible for the First Home Owner grant, First Home Loan Deposit Scheme and First Home Super Saver Scheme.
Building a new home
Building a new home may fall into two different categories for the purpose of HomeBuilder eligibility.
Purchasing house and land: If you are purchasing land, and building a house on that land, you may be eligible. You must meet all eligibility requirements, and the value of the land plus the building contract must not exceed $750,000.
If you already own the land: If you already own land but are yet to build on it, you may also be eligible. Provided you meet all the criteria, and the land value plus building contract is below $750,000, you’ll be entitled to the $25k HomeBuilder grant.
If you only want to do renovations, there are a few rules to remember. Aside from the standard eligibility criteria around Australian citizenship, age and income, these rules apply:
- Renovation contract must be between $150,000 and $750,000
- Existing land and house value must not be over $1.5 million
- Renovations must be to improve accessibility, liveability and safety of the property (pools, tennis courts etc are not included)
- The owner and builder must not have a pre-existing relationship (for example, family members)
How to apply for the HomeBuilder Grant
Your builders or renovators should be able to guide you, however we recommend contacting the relevant revenue authority in your State or Territory for details on how to apply.
For further assistance on accessing the HomeBuilder grant, please contact us today and speak to our team of experts!