The Federal Government has announced the HomeBuilder scheme as part of its Economic Response to the Coronavirus. In the announcement it is offering owner-occupiers (including first home buyers) a grant of $25, 000 to substantially renovate an existing home or build a new home.
This scheme has been offered to assist in boosting the residential construction market to recover from downturns in the industry.
To qualify for the scheme the owner-occupier must have a signed contract between 4 June 2020 and 31 December 2020 for the work (renovation or new build) the work must commence within three months of the contract date.
- you are a natural person (not a company or trust)
- 18 years or older
- an Australian citizen
- meet one of the following two income caps
- $125, 000/yr for an individual based on your 2018-19 tax return or later
- $200, 000/yr for a couple based on their 2018-19 tax return or later
- you enter into a building contract between 4 June 2020 and 31 December 2020 to either;
- build a new home (for you to live in), under the value of $750, 000: or
- substantially renovate your existing home (owner-occupier) and the renovation contract is between $150, 000 and $750, 000, and the value of the existing property you are renovating does not exceed $1.5 million
- construction must commence within three months of the contract date.
Owner-builders and those building or renovating a property intended as an investment property are ineligible for the $25k HomeBuilder. It must be your principal place of residence.
The contract made between two-parties must be made at arm’s length. Meaning if you are planning to build or renovate you cannot have a special relationship with either party such as being related.
All work must be undertaken by a registered or licenced builder or building service contractor.
If you are planning a renovation to take advantage of the HomeBuilder by adding a swimming pool, shed or garage, you are out of luck. It must improve the accessibility, safety and liveability of the dwelling.
Please refer to the Treasury Fact Sheet for more information.