What is the Homebuilder grant?
As a homeowner, you now have the chance to lower the costs of building your dream house and/or the cost of renovating. The Homebuilder grant has made it a reality to build that perfect home.
With house prices falling drastically, it’s important to think of ways to add value to your house or consider building one. Updating or renewing bathrooms, kitchens; or even small fixes such as replacing a cracked or dated splash back can go a long way. But remember you’ll only qualify for HomeBuilder if you plan to spend at least $150,000 on an owner-occupied home worth no more than $1.5 million.
The HomeBuilder grant is a tax-free grant program initiated by the Federal Government to stimulate the residential construction sector in response to the economic downturn caused by COVID-19. The grant provides eligible applicants with $25,000 if they are spending between $150,000 and $750,000.
What is the eligibility criteria for the HomeBuilder grant?
To access the $25,000 HomeBuilder grant, owner-occupiers must meet the following eligibility criteria:
- You are an individual (not a company or trust)
- Aged 18 and older.
- An Australian citizen
- You meet one of the following two 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;
- You enter into a building contract between 4 June 2020 and 31 December 2020 to either:
- Build a new home as a principal (main) place of residence; where the property value (house and land) does not exceed $750,000; or
- substantially renovate your existing home as a principal place of residence; where the renovation contract is between $150,000 and $750,000, and the value of your existing property does not exceed $1.5 million.
- Construction must commence within three months of the contract date.
To learn more about the Homebuilder selection criteria, check the factsheet on the Australian government website.
What types of homes are eligible for HomeBuilder?
All dwelling types are eligible for the scheme. This includes houses, apartments, house and land packages and off-the-plan purchases. To be eligible the owner-occupier has to build a new home or significantly renovate an existing home. Also, all eligible homeowner-occupiers will receive the grant. This includes first-home buyers and those that are not first-home buyers, provided you meet the income criteria.
When can I access HomeBuilder?
When the States and Territories begin accepting HomeBuilder applications, they will backdate acceptance of these applications to 4 June 2020. Information on when and how you will be able to access HomeBuilder will become available through the relevant State or Territory revenue office.
How can I access the HomeBuilder grant?
You need to contact the relevant authority in the state or territory, on when and how to apply. You can apply in the state you live. The relevant authority will pay you the grant, as long as you meet the eligibility criteria. The acceptance date of applications will be backdated to June 4.
For more information, download our guide: