The Federal Government will help owner-occupiers build or renovate their homes as part of the HomeBuilder package.
The HomeBuilder payment from the Federal Government will help owner-occupiers build or substantially renovate with a $25,000 grant.
This will form part of a scheme to help boost the construction industry and help with job creation in that industry.
These grants are available to Australian individuals that plan to build a new home to the value of up to $750,000 or renovate to the value of $150,000 – $750,00 that will result in the property value being worth under $1.5 million.
You would need to earn less than $125,000 p.a as an individual or $200,000 p.a as a couple to qualify.
To be eligible you would also need to enter into a building contract between 4 June 2020 and 31 December 2020 and commence building within 3 months of the contract date.
Those building on investment properties are NOT eligible.
The renovation works cannot be for additions to the property such as pools, sheds or unconnected garages.
States and Territories will have their own mechanisms to accept applications and distribute the grants. Information on when and how you will be able to apply will become available through your State or Territory.
Renovations and building works, need to be done by a registered or licenced contractor and the contract price needs to be commercially reasonable and not be inflated.
Links to Government Resources
HomeBuilder is a time-limited, tax-free grant program to help the residential construction market to get through the Coronavirus pandemic. HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.
HomeBuilder will be available for building contracts signed between 4 June 2020 and 31 December 2020, where construction or renovation commences within three months of the contract date.
You should contact your relevant State or Territory authority on when and how to apply for HomeBuilder. You will be able to apply for HomeBuilder when the Government of the State or Territory that you live in, or plan to live in, signs the National Partnership Agreement with the Commonwealth Government.
HomeBuilder grants will be paid by the relevant State or Territory authority provided the applicant meets the eligibility criteria.
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
• You are a natural person (not a company or trust);
• You are aged 18 years or older;
• You are an Australian citizen;
• You meet one of the following two income caps: $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or $200,000 per annum for a couple based on both 2018-19 tax returns or later;
• You enter into a building contract between 4 June 2020 and 31 December 2020 to either: build a new home as a principal place of residence, where the property value (house and land) does not exceed $750,000; or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property (house and land) does not exceed $1.5 million; Last updated: 4 June 2020 2
• Construction must commence within three months of the contract date. Owner-builders and those seeking to build a new home which will be used as an investment property, or renovate an existing home which is an investment property, will not be eligible for HomeBuilder. The registered or licensed builder (depending on the state or territory) must demonstrate that the contract price for the new build or substantial renovation is no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser.
No – a HomeBuilder grant will not be taxed. This is consistent with existing state and territory First Home Owner Grant programs