The Government has announced grants of $25,000 to encourage people to build a new home or substantially renovate their existing home. The HomeBuilder Grant is a time-limited, tax free cash grant intended to support the residential construction industry during the COVID-19 pandemic, but it does come with an extensive eligibility criteria.
Who is eligible for the HomeBuilder Grant?
The HomeBuilder Grant is available to owner occupiers. It is not accessible to owner builders, developers, or investors. To be eligible you need to be:
- An individual (not company or trust)
- 18 years of age or older
- An Australian citizen
Additionally, you will need to meet the income test. To be eligible, you cannot earn more than:
- Individuals – $125,000 per annum based on your 2018-19 or later tax return
- Couples – $200,000 per annum based on both of your 2018-19 or later tax returns
The building project eligibility
The grant only applies to homes that are the primary residence of the applicant and cannot be used on investment properties. Furthermore, the build or renovation contract must be signed before 31 December 2020.
The size of the project is also subject to eligibility conditions. These conditions are based on the value of the property before the commencement of the build or renovation and include the value of the house and land.
|New Home*||The property value (house and land) does not exceed $750,000|
|Renovation||•The renovation contract is between $150,000 and $750,000, and
•The value of your existing property (house and land) does not exceed $1.5 million
* house, apartment, house and land package, off-the-plan, etc.
Am I eligible if I already own my own land?
If you own or have purchased land but have not signed a contract to build your home, you may meet the eligibility criteria if you:
- Own a property (house and land), and knock down the house to rebuild
- this will be counted as a substantial renovation, and therefore subject to the renovation criteria
- Own vacant land before 4 June 2020, and then build
- the total value of the land and build cannot exceed $750,000.
What type of renovations are allowed?
For homeowners looking to renovate, the renovations must be completed by a licenced or registered builder, and must be an improvement of the liveability, accessibility, or safety of your home. The HomeBuilder Grant cannot be used for property additions such as pools, tennis courts, saunas, sheds, or garages that are not connected to the property.
Will this affect other first home-owner grants?
The HomeBuilder Grant does not exclude first home buyers from accessing other grants such as the First Homeowner Grant, stamp duty concessions, the First Home Loan Deposit Scheme, or First Home Super Saver Scheme.
For more information on the HomeBuilder scheme or any property advice, you can speak with Sarah Tobias or myself, the Property Tax Champions.