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Here's a quick guide on the HomeBuilder Grant.
This recently announced $688 million stimulus package is designed to support Australians looking to construct or upgrade their homes while providing much-needed impetus to the construction sector. Here’s a quick guide on how the scheme works.
What is it?
The HomeBuilder grant is a non-taxable $25,000 grant for owner-occupied properties (investment properties are ineligible) to be used for:
- New home constructions where the cost of the new home build (including land price) is less than $750,000.
- Renovations that cost between $150,000 to $750,000 for properties valued at less than $1.5 million before the upgrade. All upgrades must improve the accessibility, safety and liveability of the dwelling. Examples include kitchen and bathroom renovations. Renovations that are not connected to the primary residence like swimming pools, garages and sheds are ineligible.
Additionally, all construction and renovation work must be carried out by a licensed contractor. Construction or renovation much commence within three months of a signed contract. Finally, the grant is applicable for contracts signed between 4 June 2020 and 31 December 2020.
The applicant(s) should be
- Over 18 years of age (only individuals can apply – not trusts, institutions or companies).
- Australian Citizen(s) (Permanent Residents and Temporary Residents are ineligible).
- Earning less than $125,000 as a single individual and $200,000 annually as a couple.
Who will pay the grant and by when?
- Though this is a federal government initiative, the respective state government will pay the grant.
- In terms of when you can expect to receive the grant:
- The grant will be paid at the slab stage for a new build.
- In case of renovation, you can collect it after you’ve spent $150,000.
- For off-the-plan purchases, the grant is likely to be paid during total payment at the time of the settlement.
While this may vary on a case to case basis, the following documents will be required for all applicants.
- Proof of identity
- Copy of builder’s registration or licence
- Signed and dated contract copy
- 2018-19 tax returns copy
You may also need other documents like council approvals, building contracts, property value etc.
The grant is highly popularised and may lead to complete booking of contractors. So, while you don’t have to be pressured into making the wrong construction or renovation choice, it’s best to act fast.
- Check the credentials of your contractor to make sure he/she is licensed.
- Be ready with your documentation.
In addition to the HomeBuilder scheme, you may also be eligible for a host of other incentives both at the state and federal government level. Reach out to us to make the best of this and other incentives.
The information is a compilation from various sources for your benefit and should not be relied upon in lieu of appropriate professional advice.