HomeBuilder is a tax-free grant program initiated by the Federal Government. It aims to stimulate the residential construction sector following the economic downturn caused by COVID-19.
The HomeBuilder Grant provides eligible applicants with a $25,000 grant to help build a new home or substantially renovate an existing home.
This payment will complement existing First Home Owner Grant programs, stamp duty concessions and other grant schemes.
The grant is accessible to owner-occupiers, and will not be available to owner-builders or investors.
You must meet the following eligible criteria:
- You are an individual; and
- You are aged 18 years or older; and
- You are an Australian citizen
In addition to this, one of the following two income caps must be met:
- Individuals: $125,000 as per 2018-19 tax return
- Couples: $200,000 combined as per 2018-19 tax returns
The building contract must be between 4 June 2020 and 31 December 2020. Construction must also commence within three months of the contract date.
Certain requirements must be met, depending on the building contract:
- When building a new home the property value cannot exceed $750,000; or
- Substantially renovating your existing home. The renovation contract must be between $150,000 and $750,000 and the value of the property (house and land) does not exceed $1.5 million
The property in question must be occupied as a principal place of residence.
In addition to this, contracts must be dealt with at arms-length, that is, the parties cannot be related or connected. The price of the contract must also be commercially reasonable, and builders may be required to demonstrate that the contract price is no more than a comparable product as at 1 July 2019, at the purchaser’s request. Builders must be registered or licensed and named as a builder on the building license or permit.