If you’ve been thinking of building a new home, you’ve probably heard about the HomeBuilder Grant, currently offered by the Morrison Government; a $25,000 grant to put towards a new build or a renovation. If you’ve never owned a home before, you’re also eligible for the $15,000 First Home Owners’ Grant, meaning you could have $40,000 to add to your new home build!
Interested to know more? We’ve put together this handy infosheet for anyone thinking of building or renovating.
What is HomeBuilder?
The Australian Government’s HomeBuilder Grant provides eligible owner-occupiers (including first home owners) with a $25,000 grant to build a new home or substantially renovate an existing home. HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations. (source: https://treasury.gov.au/coronavirus/homebuilder )
Am I eligible for the HomeBuilder Grant?
To qualify for the HomeBuilder Grant, you need to meet the following criteria:
Be an Australian citizen aged 18 years or older and be an individual, not a company or trust.
Be on an income of less than $200,000 combined for couples, or $125,000 for singles. This will be based on your 2018/19 Tax Return or later. The income limit is based on your gross income, before tax and excluding superannuation.
Be spending between $150,000 and $750,000 on a renovation for a home that has been previously valued at less than $1.5 million (for house and land). This doesn’t include building things outside of your home, like a granny flat, swimming pool, tennis courts or shed.
Be building a new home that you will live in worth less than $750,000 (house and land).
Some other key eligibility criteria which you may not be aware of:
To qualify, your building contract MUST be signed after 4th June and before 31st December, 2020, through a licensed or registered builder, and;
Construction of your new home, or renovation, must commence within three months of signing that contract.
Any building or renovation contract entered into must be at arm’s length, meaning the contract must be made by two parties freely and independently of eachother
The terms of the contract must be commercially reasonable and the contract price should not be inflated compared to the fair market place. This will be determined by requesting specific information from the builder, comparing a similar product (quality, location and size) as at 1 July 2019
If you’re building a duplex, it’s important to remember that you will only be able to claim one of the properties as your principle place of residence. This means the other property will be classes as an investment and therefore not eligible for the Grant.
Using the HomeBuilder Grant together with the First Home Owners’ Grant
As earlier, you can use the HomeBuilder Grant ($25,000) together with the First Home Owners’ Grant ($15,000), giving you a $40,000 boost. This could go a long way in helping you secure your very first home, right here on the Sunshine Coast.