HomeBuilder Grant: What is it and how can homeowners can access it?

What is HomeBuilder Scheme?

HomeBuilder is a time-limited, tax-free grant program to help the residential construction market to get through the Coronavirus pandemic.

HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 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 this year.

When Can I Access HomeBuilder?

In order to access the grant you must sign a building contract between 4 June 2020 and 31 December 2020. Construction must also commence within 3 months of the contract date.

How Can I Access HomeBuilder ?

You should contact your relevant State or Territory authority on when and how to apply for HomeBuilder.  You will be able to apply for HomeBuilder when the Government of the State or Territory that you live in, or plan to live in, signs the National Partnership Agreement with the Commonwealth Government.

Am I Eligible To Receive HomeBuilder?

To be eligible you must meet the following eligibility criteria:

  • You must be an owner-occupier whether building or renovating
  • 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 (house and land) 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 (house and land) does not exceed $1.5 million;
  • construction must commence within 3 months of the contract date.

Can I Access The Grant To Build Or Renovate an Investment Property?

No.  Those seeking to build a new home that will be used as an investment property, or renovate an existing home which is an investment property, will not be eligible for HomeBuilder.

I Already Own Land But Haven’t Signed a Contract To Build A New House, Am I Still Eligible?

Yes, if you meet the following criteria:

  • If you own vacant land before 4 June 2020, and then build, the total value of the land and new build cannot exceed $750,000; or
  • If you buy the land after announcement, and then build, the total value of the land and build cannot exceed $750,000.
  • If you own a property (house and land), and knock the house down to rebuild – this will be counted as a substantial renovation, and therefore subject to the renovation price range of $150,000 to $750,000 provided the total value (house and land) of the property does not exceed $1.5 million pre-renovation;

Is a HomeBuilder Grant Taxed?

No – a HomeBuilder grant is tax free.

What Renovations Will Be Eligible?

To be eligible for HomeBuilder, the value of renovations must be within the price range of $150,000 and $750,000, the total value of your existing house and land must not exceed $1.5 million, and construction must commence within three months of the contract date. This excludes building a tennis court, pool or shed.

I Am Not A First Home Buyer, Can I Access HomeBuilder?

Yes. Provided you meet the eligibility criteria, you can apply for a HomeBuilder grant.

How Do I Apply?

You will be able to apply for HomeBuilder through your relevant State or Territory revenue office or equivalent authority, once the State or Territory Government that you live in (or plan to live in) signs the National Partnership Agreement.  You should contact your relevant State or Territory revenue office for more information about when and how you will be able to apply for HomeBuilder.

For more information – https://treasury.gov.au/sites/default/files/2020-06/HomeBuilder_Frequently_asked_questions.pdf

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