Home owners have been given a fast track ticket to renovating or building their new home with the governments latest initiative. The HomeBuilder grant is another reaction to the economic downturn spurred on by C-19, a tax-free grant of $25,000 to be used to renovate or build a home.
The way in which you will access HomeBuilder varies from state to state and Victoria is yet to release their process however the government has specified that this grant will apply to those who sign a contract to renovate or build between the 4th of June and 31st of December 2020. Construction must then commence within three months of the contract date.
Ok so who’s eligible?
To cash in on this grant you will need you to tick off the following:
- You’re 18 or over and an Australian citizen
- You are a person (not a company or trust)
- You earn a maximum of $125,000 per annum if you are an individual applicant or $200,000 per annum for a couple. This is based on your 2018-19 taxable income.
What about the build?
While you’re ticking boxes, you’ll need to fit the following criteria when considering the project you’ll undertake.
- For those renovating, your spend will need to be over $150,000 and your existing property needs to be valued at less than the national price cap of $1.5 million
- If you’re building, the home will need to be under the national price cap of $750,000
- Any building works must improve the liveability, accessibility or safety of your home.
- Your grant can’t be used on property additions not connected to the main residence. No pools, outdoor spas, saunas, tennis courts, sheds or garages.
Owner-builders or those looking to build a new home as an investment are not eligible. However, whilst new home owners are the target, those who are not first-home buyers but are looking to move and meet this criteria are eligible. This grant covers those buying off the plan and looking into house and land packages, so long as they meet the criteria.
Applying will be a matter of contacting your state government authorities once they sign the National Partnership Agreement with the Federal Government. When you’re ready to apply, you’ll need:
- A copy of the contract dated and signed by the applicant and the nominated registered or licensed builder.
- A copy of your builder’s registration or license, depending on state or territory requirements.
- A copy of your 2018-19 tax return or later to illustrate your eligibility under the income cap.
- Documents such as council development approvals, building contracts, occupation certificates and evidence of land value.
Big picture: the government is anticipating a cost of $680 million but this will depend on the take-up across the country. For more details check out their fact sheet here and FAQs here.
