All You Need To Know About The $25K Homebuilder Grant
On 4 June 2020, the Australian Government announced the HomeBuilder grant, which offers eligible citizens $25,000 towards renovations or new home build. To find out all of the relevant information, and whether you’re eligible to apply, keep reading!
What is HomeBuilder?
As the country begins its economic recovery from the Covid-19 pandemic, the Government has identified the construction industry as a target for assistance. The HomeBuilder grant aims to stimulate the construction industry by providing $25k to eligible home owners and home builders to assist with building or renovating an existing property.
It doesn’t replace other schemes, meaning people may also still be eligible for the First Home Owner grant, First Home Loan Deposit Scheme and First Home Super Saver Scheme.
Do I qualify for the HomeBuilder grant?
The following eligibility criteria must be satisfied to qualify for the homebuilder grant:
you are a natural person (not a company or trust);
you are aged 18 years or older;
you are an Australian citizen;
your annual income (based on 2018/2019 tax returns or later) doesn’t exceed $125,000 per year for an individual, or $200,000 per year for a couple;
you enter into a building contract between 4 June 2020 and 31 December 2020 to either:
build a new home as your permanent residence, where the combined house and land value doesn’t exceed$750,000, or
substantially renovate your home. The renovation contract must be between $150,000 and $750,000, and existing house and land value must not exceed$1.5 million.
construction must begin within 3 months of the contract date
This only applies to people intending to live in their home, meaning the grant is not available for investment properties.
Knocking down and rebuilding
You may be eligible for the HomeBuilder grant if you’re intending to knock down your existing home and build a new one. Technically, this is considered a ‘renovation’, so if you meet the age and income requirements, you also must ensure:
The existing house and land value (before knockdown) is below $1.5 million
The renovation contract falls between $150,000 and $750,000
House and Land Packages
If you meet all eligibility requirements, you can definitely access the HomeBuilder grant for buying a house and land package. The key criteria here is, the value of the house and land cannot exceed $750,000.
You can also still access the First Home Owner grant, First Home Loan Deposit Scheme and First Home Super Saver Scheme. The HomeBuilder grant is separate and is paid on top of other incentives.
There are two different home building scenarios to consider for the HomeBuilder grant.
Purchasing both house and land
Outside of purchasing a specific house and land package, many people buy their land, and then enlist builders independently. As long as you meet all eligibility criteria, you will be eligible. Importantly, the value of your land and the amount of the building contract needs to be under $750,000.
Already own the land, but want to build
If you’ve bought a block of land but haven’t started construction on a home, you can still be eligible for the grant. As long as all criteria are met, you will be eligible as long as the land value and building contract is less than $750,000.
Just doing renovations?
While most renovations won’t cost you $150,000, if you do have substantial renovations in mind you could still be eligible. The following key criteria must be met, on top of age, income and citizenship requirements.
Cost of renovations must be between $150,000 and $750,000
Pre-renovation house/land value must be less than $1.5 million
Renovations must be to improve accessibility, liveability and safety of the property (pools, tennis courts etc are not included)
The parties to the renovations must be ‘at arm’s length’. This means owner and renovators must not have an existing relationship.
How to apply for the HomeBuilder Grant
At Avondale Homes, our friendly team understand the HomeBuilder grant inside and out, so please contact us for further information. You can also contact the relevant authority in your state to find out if you’re eligible.