Written by Peter Waller – Special Counsel – QLS Accredited Specialist – Commercial Litigation
The Federal Government extended the HomeBuilder grant at the start of this year, (now $15,000, down from $25,000) and eligible owner-occupiers have until 31 March 2021 to sign an eligible contract.
Reportedly, more than 75,000 Australian households applied for the first round of grants as of 31 December 2020. About 80% were to help build a new home and 20% were for renovations or rebuilds.
The extended HomeBuilder grant is aimed at continuing to assist the residential construction market by encouraging homeowners to embark on new home builds or renovations into 2021.
Are you eligible?
A person is eligible for the new grant if:
- You must not have previously received a HomeBuilder grant in any state or territory of Australia.
- you are aged 18 years or older and are an Australian citizen (it is not available to companies or trusts);
- your income is below:
- $125,000 per annum for individuals; or
- $200,000 per annum for couples;
- You are the registered owner on the title and enter into a building contract between 1 January and 31 March 2021 to either:
an off-the plan or new home valued at $750,000 or less (including GST) and
construction had not started before 4 June 2020
a new home where the build amount and the value of the land (including any
existing structures) is $750,000 or less (including GST)
renovate an existing home, where
cost between $150,000 and $750,000 (including GST)
- value of property (home and land before renovation) is less than $1.5 million.
- renovations cost between $150,000 and $750,000 (including GST)
- the work starts within six months of the contract date; and
- the work is undertaken by a licenced building contractor.
What else do you need to know?
The tax-free grant will apply to all owner-occupiers – not just first home buyers. All dwelling types (house, apartment, house and land package, off-the-plan, etc) are eligible under the HomeBuilder scheme.
The renovation works must improve the accessibility, safety and liveability of the dwelling. This excludes building swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).
HomeBuilder will complement 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.