UPDATE – 20 APRIL 2021
The Australian Government is extending the construction commencement requirement for the successful HomeBuilder program from six months to 18 months for all existing applicants.
The extension will only apply to existing applicants and provide an additional 12 months to commence construction from the date that the building contract was signed. All applicants who signed contracts during the HomeBuilder eligibility period between 4 June 2020 and 31 March 2021 will have this extension applied to them.
Applications closed on the 14th of April. However, applicants have until 30 April 2023 to submit all supporting documentation (such as invoices for work done, and proof that construction has started) to their State or Territory Revenue Office.
https://treasury.gov.au/coronavirus/homebuilder
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.
Eligibility
- 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.
