The Federal Government announced last week a new HomeBuilders Grant as part of their larger COVID19 Economic Response to assist the residential construction industry.
The new grant will allow eligible owner-occupiers a grant of $25,000 to build a new home or renovate their existing home.
HomeBuilder is designed to complement the existing State and Territory homeowner grant programs and is an uncapped grant that will run until 31 December 2020.
This program will be implemented through a National Partnership Agreement which is signed by the Federal and individual State and Territory governments. Therefore, all applications will be through the applicable state government, rollout of the program will depend on when your state signs up to the program. However, the Federal government has assured that no matter when your state signs up the applications will be backdated to 4 June 2020 when the program was announced.
- You are a natural person (not a company or trust);
- You are 18 years or older;
- An Australian citizen;
- Your income is under the income threshold for the 2018/2019 financial year:
- $125,000 per annum for an individual, or
- $200,000 per annum for a couple.
- You must enter a building contract between 4 June 2020 and 31 December 2020;
- The contract must be to either:-
- build a new home where the property value will not exceed $750,000 (value of the land plus contract price of build); or
- substantially renovate your existing home where the renovation contract is between $150,000 and $750,000 and the value of your existing property does not exceed $1.5 million.
- The build must be to improve the liveability of the property and must not be used for renovations to build any of the following:-
- A swimming pool;
- A tennis court;
- Outdoor spa or sauna; or
- Sheds or garages (unconnected to the property).
- Construction on the build must commence within 3 months of the contract date.
- The construction must be on a principal place of residence. Any owner-builders who are seeking to build or renovate investment properties will be ineligible for the grant.
- All building contracts must be at arm’s length and commercially reasonable.
If you need any further information in relation to the HomeBuilders Grant or require clarification regarding your possible eligibility, please contact one of our experienced members of staff.