HomeBuilder Grant

Recently, the Government released a new HomeBuilder grant as another economic response
to the coronavirus. The initial information supplied has been a little hazy, with many confused
about how to qualify to receive this grant.
Well we’ve done some investigation, so you don’t have to! Here’s what we know:
HomeBuilder is a $25,000 tax-free grant to aid in the building of a new home or substantially
renovate an existing home. The idea behind it is that it will assist the residential construction
market by encouraging the commencement of new home builds and renovations this year.
As with all government grants, you do need to meet a certain criteria. The eligibility currently
outlined includes:

  • Must be an Australian Citizen.
  • Own or be purchasing a property that is in your name (not a business or trust).
  • New homes must be valued under $750,000.
  • You must be building a new home to be an owner-occupier. Not as an investment
    property.
  • To renovate an existing home, the renovation must cost between $150,000 to
    $750,000, and the property must not be valued at more than $1.5m.
  • The renovations need to “improve the accessibility, liveability and safety” of your home
    and cannot be used to build things outside of your home like a swimming pool, tennis
    court or sheds (yeah, we had a little sigh about this too).
  • Contracts must be signed between June 4 th and December 31 st 2020.
  • Construction must begin within 3 months of the contract date.
  • You must use a licenced or registered builder, and cannot be an owner builder.
  • You must have earned under $125,000 as an individual or under $200,000 as a couple.
    Contracts before July 1 will use the 2018-2019 tax return and any contracts from July 1
    will use the 2019-2020 tax return.
    There are a couple of exciting points to note on this grant, and the main one is that you do
    NOT have to be a first home builder. We know there is a lot of help out there for first home
    buyers, but this one is a lot more inclusive (unless you’re an owner builder, sorry guys!).

If you are a first home builder, this grant is also valid in conjunction with the
First Home Owners Grant, which means you could have a whopping $40,000
taken off your loan! You can read more about the FHOG in our other blogs.

There are still some details that are yet to be clarified, which should become clearer when the
application form is officially released, however this information should give you a fairly clear
idea as to whether you will qualify or not.
As always, for sound financial advice based on your personal circumstances, we suggest
talking to a financial professional, whether it be your local bank, a home loan lender or
mortgage broker.