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HomeBuilder Program Explained

The HomeBuilder program has been announced to help drive economic activity across the residential construction sector by providing grants of $25,000 to eligible owner-occupiers for new home construction and substantial renovations.



Support to build or renovate your home


If you’re looking to build a new home, complete a knock-down rebuild or to substantially renovate your existing home, you may be eligible to apply for a Government grant of up to $25,000 to put towards construction costs.


The HomeBuilder program will complement existing support measures, such as state-based first home-owner grants and stamp duty concessions. It is also accessible in conjunction with the First Home Owner Super Saver Scheme and First Home Loan Deposit Scheme. The good news is, you don’t need to be a first home owner to apply for the grant, so if you’re not eligible to participate in any existing schemes, this program might provide you with support.


Eligibility criteria


To be eligible for a grant, the following eligibility criteria must be met:


Age and citizenship

· You must be an Australian citizen

· You need to be aged 18 years or older


Individual income caps

Your income must be below one of the two caps below:

· $125,000 per annum for an individual applicant based on your latest tax return (either 2018/19 or 2019/20), or

· $200,000 per annum for a couple based on both individual’s latest tax returns (either 2018/19 or 2019/20)


Date of contract and construction

· The building contract must be entered into between 4 June 2020 and 31 December 2020

· Construction must commence within three months of the contract date


Grant to build a new home – requirements

· The new home must be occupied as a principal place of residence

· The completed value of the new build (land and property) cannot exceed $750,000

· This criteria applies where vacant land is purchased either before or after 4 June 2020, with a contract to build entered into after this date


Grant for substantial renovations – requirements

· Substantial renovations to an existing principal place of residence must have a commercial contract price between $150,000 and $750,000

· Renovations include where a property (house and land) is already owned and a knock down rebuild is completed (where the new build cost is capped at $750,000)

· Pre-renovation value of the property must not exceed $1.5 million

· Renovations must improve accessibility, safety or liveability and cannot include additions such as swimming pools, spas, sheds or stand-alone garages


Use of property

· The home must be used as your primary place of residence

· The new or renovated dwelling cannot be intended for use as an investment property


Companies, trusts and owner-builders

· Not available to companies or trusts, including SMSFs

· Not available to owner-builders


Evidence required

You’ll be asked to provide:

· proof of identity

· a copy of a signed and dated contract

· a copy of your builder’s registration or licence

· a copy of your latest tax return (either 2018/19 or 2019/20), and

· other documents such as Council approval, contracts, occupation certificates and valuations


Other

· All contracts and agreements must be entered into at arm’s length, which means conditions such as the price and scope of works must be commercial, rather than favourable because of your relationship with another party involved

· All building and renovation work must be carried out by a registered or licenced contractor and named as a builder on the building licence or permit

· Unlike some other Commonwealth and State-based schemes, there is no requirement that you need to be a first home buyer


Next steps

To find out more about this program and whether you might be eligible, you should speak to your financial planner, or access further information from the below sources:

· Treasury Fact Sheet: HomeBuilder

· Treasury Fact Sheet: HomeBuilder – FAQs

· The state revenue office in your location – see list below.

NSW revenue.nsw.gov.au

VIC sro.vic.gov.au

TAS sro.tas.gov.au

WA finance.wa.gov.au

SA revenue.sa.gov.au

NT treasury.nt.gov.au

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© 2018 Bradbury Wealth

Shane Bradbury (Authorised Representative #244677) is an employee of STB Wealth Pty Ltd ACN 614 239 799 trading as Bradbury Wealth (Corporate Authorised Representative #1250433) of Meritum Financial Group Pty Ltd ABN 93 106 888 215 (Australian Financial Services Licence #245569) Any advice in this site is of a general nature only and has not been tailored to your personal circumstances. Please see personal advice prior to acting on this information. To read our Financial Services Guide click here. To read our Terms and Conditions click here

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