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The Australian Federal government launched its new HomeBuilder grant scheme which aims to assist the construction industry to continue working through the recession.
This is great news for the construction industry as Australians are encouraged to build their dream home or start major renovations this year. The $688 million HomeBuilder grants scheme will put $25,000 in the hands of Australians who sign contracts for theses works from 4th June until 31st December.
It is hoped that this scheme will keep 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector, helping to rebuild Australia's economy through the COVID-19 recession. Set to benefit from this scheme are businesses and sole-trader builders, contractors, property developers, construction materials manufacturers, engineers, designers and architects.
"If you've been putting off that renovation or new build, the extra $25,000 we're putting on the table along with record low-interest rates means now's the time to get started," Scott Morrison
HomeBuilder Grant Scheme
- $25,000 per Australian
- For use on owner-occupier new builds or extensive home renovations
- Construction must be contracted to commence within three months of the contract date
- Available from 4th June 2020 until 31st December 2020
- All dwelling types are eligible under HomeBuilder - house, apartment, house and land package, off-the-plan, etc
- Tax-free grant
- Renovations must improve the accessibility, liveability and safety of the property. This excludes building a tennis court, pool, spa, sauna, shed or garages.
- Renovations must be completed by a licensed or registered builder
- HomeBuilder is not available for investment properties or to owner-builders
HomeBuilder Grant eligibility criteria
- You are a natural person (not a company or trust)
- You are aged 18 years or older
- You are an Australian citizen
- You meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for a couple based on both 2018-19 tax returns or later
- You enter into a building contract between 4 June 2020 and 31 December 2020 to either:
- build a new home as a principal place of residence, where the property value does not exceed $750,000; or
- substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million
- Construction must commence within three months of the contract date.
HomeBuilder Application Documents:
- Proof of identity
- Copy of the contract, dated and signed by you and the nominated registered or licenced builder
- Copy of the builder’s registration or licence (depending on the state you live in)
- Copy of your 2018-19 tax return (or later) to demonstrate your eligibility against the income cap
- Documents such as council approvals, building contracts or occupation certificates and evidence of land value.
For first home buyers, the HomeBuilder scheme can be used in conjunction with existing state and territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
Applications for HomeBuilder will open when the State and Territory Governments sign the National Partnership Agreement with the Commonwealth Government. When the States and Territories begin accepting HomeBuilder applications, they will backdate acceptance of these applications to 4 June 2020.
Full details of the HomeBuilder program can be found here: https://treasury.gov.au/coronavirus/homebuilder
Or by State, updated here as the details become available:
ACT
WA
NT
For more details on COVID-19 State stimulus packages, check out TradiePad's Tradie Survival Pack
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