Uncovering the HomeBuilder Package

What is it?

HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. As the government’s next economic response to Covid-19, HomeBuilder will assist the bounce-back of the residential construction market by encouraging the commencement of new home builds and renovations for the rest of this year.

The program will complement existing support measures, such as state-based first home-owner grants and stamp duty concessions. It is also accessible in conjunction with the First Home Owner Super Saver Scheme and First Home Loan Deposit Scheme.


Who is eligible for HomeBuilder?

If you’re looking to build a new home, complete a knock-down rebuild or substantially renovate your existing home, you may be eligible to apply for a Government grant of up to $25,000 to put towards construction costs. The good news is, you don’t need to be a first homeowner to apply for the grant, so if you’re not eligible to participate in any existing schemes, this program might provide you with support.

Eligibility criteria are as follows:

Age and citizenship

• You must be an Australian citizen

• You need to be aged 18 years or older

Individual income caps

Your income must be below one of the two caps below:

• $125,000 per annum for an individual applicant based on your latest tax return (either 2018/19 or 2019/20), or

• $200,000 per annum for a couple based on both individual’s latest tax returns (either 2018/19 or 2019/20)

Date of contract and construction

• The building contract must be entered into between 4 June 2020 and 31 December 2020

• Construction must commence within three months of the contract date

Grant to build a new home – requirements

• The new home must be occupied as a principal place of residence

• The completed value of the new build (land and property) cannot exceed $750,000

• This criteria applies where vacant land is purchased either before or after 4 June 2020, with a contract to build entered into after this date

Grant for substantial renovations – requirements

• Substantial renovations to an existing principal place of residence must have a commercial contract price between $150,000 and $750,000

• Renovations include where a property (house and land) is already owned and a knock down rebuild is completed (where the new build cost is capped at $750,000)

• Pre-renovation value of the property must not exceed $1.5 million

• Renovations must improve accessibility, safety or liveability and cannot include additions such as swimming pools, spas, sheds or stand-alone garages

Use of property

• The home must be used as your primary place of residence

• The new or renovated dwelling cannot be intended for use as an investment property

Companies, trusts and owner-builders

• Not available to companies or trusts, including SMSFs

• Not available to owner-builders

Evidence required

You’ll be asked to provide:

• proof of identity

• a copy of a signed and dated contract

• a copy of your builder’s registration or licence

• a copy of your latest tax return (either 2018/19 or 2019/20), and

• other documents such as Council approval, contracts, occupation certificates and valuations


• All contracts and agreements must be entered into at arm’s length, which means conditions such as the price and scope of works must be commercial, rather than favourable because of your relationship with another party involved

• All building and renovation work must be carried out by a registered or licenced contractor and named as a builder on the building licence or permit

• Unlike some other Commonwealth and State-based schemes, there is no requirement that you need to be a first home buyer


A Case Study Example

Owner-occupiers Jacqui and Henry decide to knock down and rebuild their existing home
Jacqui and Henry enter into a building contract to knockdown and rebuild their existing home on 24 August 2020, with the knockdown and rebuild contract valued at $400,000. The value of the property is $800,000 (including the current value of the dwelling and land). The couple pay the builder $15,000 to commence the knockdown and rebuild on 14 September. Jacqui and Henry’s bank applies on the couple’s behalf to the relevant State or Territory revenue office to receive the HomeBuilder $25,000 grant. The revenue office conducts the eligibility checks and confirms that the couple own the property, are Australian citizens, over the age of 18, have a combined taxable income under $200,000 based on their 2018-19 tax return, and the value of their existing home and land pre-renovation is less than $1.5 million. The building contract is also within the HomeBuilder renovations price range (between $150,000 and $750,000) and the couple have made the first progress payment on the renovations. The revenue office approves the application. As Jacqui and Henry already own their own home, they are not eligible for the First Home Owner Grant, the First Home Loan Deposit Scheme or the First Home Super Saver Scheme.

More examples can be found at the Treasury Fact Sheet here.

Other available resources for you include:



Next Steps

To find out more about this program and whether you might be eligible speak to us to get you moving in the right direction.



Important information and disclaimer

The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. 

FinPeak Advisers ABN 20 412 206 738 is a Corporate Authorised Representative No. 1249766 of Aura Wealth Pty Ltd ABN 34 122 486 935 AFSL No. 458254

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