The Federal Government has released the finer details of what it is calling the Homebuilder Program.
HomeBuilder is a time limited grant program to assist the residential construction market to bounce back from the Coronavirus crisis.
It will provide eligible Owner Occupiers (including first home buyers) with a grant of $25,000 to either build a new home or substantially renovate an existing home where the contract is signed between 4th June 2020 and 31st December 2020. Construction or works on the renovation must commence within three months of the contract being signed.
To access HomeBuilder, owner occupiers must meet the following eligibility criteria:
- You are a natural person/s (ie 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 a single applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for joint applicants based on combined 2018-19 tax returns or later;
- You enter into a building contract between 4th June 2020 and 31st December 2020 to either:
- Build a new home as a principal place of residence, where the property value does not exceed $750,000; or
- Substantially renovate your existing principal place of residence, where the renovation contract is a minimum of $150,000 and a maximum of $750,000, and the value of your existing property does not exceed $1.5 million;
- Any renovation works must be to improve the accessibility, safety and liveability of the dwelling. It cannot be used for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages that are unconnected to the property.
- Owner builders or properties that are currently or will be used as investment properties are excluded.
- Construction must commence within three months of the date of the contract.
The program will be managed by respective State Governments, on behalf of the Commonwealth Government, and will exist in tandem with other available State Government grants. This means that a potential first home buyer who elects to build their first home could be eligible for a total of $40,000 in grants, as well as the First Home Loan Deposit Scheme (FHLDS). This is the cohort who clearly stand to benefit the most from the scheme.
Unlike the FHLDS, which is only available through a limited number of Lenders and there are only a limited number of places available, the HomeBuilder grant is available to anyone who meets the above criteria through the Lender of their choice.
To find out more, speak with us today by calling 8300 8300.