The Federal Government announced the HomeBuilder scheme as part of its Economic Response to the Coronavirus. The scheme offers 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 industry in an aim to assist in economic recover.
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 considering a renovation to take advantage of the HomeBuilder by adding a swimming pool, shed or garage, you are out of luck. The renovation must improve the accessibility, safety and live-ability of the dwelling.
For more information please refer to the Treasury Fact Sheet.