In an effort to help the residential construction market bounce back from the COVID-19 crisis, the government has announced a new HomeBuilder scheme. This program is a time-limited grant offer that will provide existing homeowners and new home buyers with a grant of $25,000 to either build a new home or substantially renovate their existing home.
Contracts must be signed between 4 June 2020 and 31 December 2020, and construction must begin within three months of the contract date.
In order to be eligible for the HomeBuilder scheme, you must be an individual or couple (not a company), be an Australian citizen and be at least 18 years of age. You must also meet one of the two income level caps:
- $125,000 or less per year as an individual, based on your 2018-19 or 2019-20 tax return
- $200,000 or less per year as a couple, based on both of your 2018-19 or 2019-20 tax returns.
For renovations, you need to spend between $150,000 and $750,000 and the house you’re renovating must be valued at less than $1.5 million prior to renovations. Renovations also need to improve the accessibility, safety or liveability of the home and don’t include external work like sheds, tennis courts and swimming pools.
For new builds, the total value of the completed home needs to be less than $750,000, including land. Any properties being built or renovated as investment properties are ineligible for the grant.
The eligibility criteria is quite strict so it’s important you understand the guidelines. To learn more about requirements and eligibility for the HomeBuilder grant, visit the Treasury website.