HomeBuilder Grant

In June 2020, as part of its economic response to Coronavirus, the Australian Government announced its HomeBuilder Grant.  The purpose of which is to assist in the continuation of the construction industry through employment of trades and to maintain or increase the property market.

So, what is it all about?

The Grant provides eligible owner-occupiers with a grant of $25,000 to build a new home or to substantially renovate an existing home.  Owner-occupier refers to someone living in or intending to immediately live in a property as their main residence.

Here’s what you need to know if you are eligible…

LAND BUYERS / VACANT LAND / OFF-THE-PLAN BUILDS

The grant is available to owners who own land or are buying land and intend to build a home on the property as their main residence. Criteria each owner must meet:

1. Be a natural person (ie not a company or trust)
2. Be over 18 years old
3. Are an Australian citizen
4. The property is your main residence
5. You are not an owner-builder
6. You meet one of the following two income caps:
   1. INDIVIDUAL APPLICATION // no more than $125,000 per annum based on your 2018/19 taxable income OR
   2. COUPLE APPLICATION // no more than a combined value of $200,000 per annum based on your 2018/19 taxable income
7. The building contract was signed between the 4th June 2020 and 31st December 2020
8. Construction must begin within three months of the building contract signing date
9. The builder cannot be a relative (must be an arm’s length transaction between unrelated parties)
10. The property value (house and land) must not exceed $750,000

BONUS – this Grant is an additional monetary payment to the First Home Builders Grant for first home owners!

SUBSTANTIAL RENOVATIONS // Homeowners are eligible for the Grant if they enter into a building contract for works that will significantly improve their property but not for works that would be viewed as repairs to the home.  Criteria each owner must meet:

1. Be a natural person (ie. not a company or trust)
2. Be over 18 years old
3. Are an Australian citizen
4. The property is your main residence
5. You are not an owner-builder
6. You meet one of the following two income caps:
   1. INDIVIDUAL APPLICATION // no more than $125,000 per annum based on your 2018/19 taxable income OR
   2. COUPLE APPLICATION // no more than a combined value of $200,000 per annum based on your 2018/19 taxable income
7. The building contract was signed between the 4th June 2020 and 31st December 2020
8. Construction must begin within three months of the building contract signing date
9. The builder cannot be a relative (must be an arm’s length transaction between unrelated parties)
10. The contract price must be between $150,000 and $750,000
11. The property value before the renovations must not exceed $1.5 million
12. The works must be in connection with the dwelling (ie swimming pools, stand along garages and granny flats do not apply)

PROCESS + TIMING OF PAYMENT // Applications for the Grant are not yet available.  For new builds, the grant will be paid in line with the timing of payments for First Home Owner Grants, or at the discretion of their state and territory.

For substantial renovations, the grant will be paid once at least $150,000 of the contract price has been paid for the renovation.

ADDITIONAL CONSIDERATIONS // While all States and Territories have signed the National Partnership Agreement for the Grant to proceed, each State and Territory through their relative Revenue Office’s (or equivalent) will be setting their own guidelines and framework for applications and these may slightly alter the criteria above.

Please do not hesitate to contact our friendly legal team should you wish to discuss the Home Builder Grant further.

ADDITIONAL RESOURCES:

Watch this space – SRO – https://www.sro.vic.gov.au/owning-property/australian-homebuilder-grant

Australian Government – https://treasury.gov.au/coronavirus/homebuilder