16 Jun 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 |
Other |
• 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
More examples can be found at the Treasury Fact Sheet here.
Other available resources for you include:
- Treasury Fact Sheet: HomeBuilder FAQs
- The state revenue office in your location – see table below.
NSW |
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VIC |
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TAS |
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WA |
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SA |
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NT |
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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