How can HomeBuilder help me if I want to renovate or build?
Find out how the Federal Government's nearly $700 million home building package can help your renovation
Aimed at encouraging new builds and renovations that can commence this year, here is everything you need to know about making the scheme work for you.
First the good news: a cash grant to build or improve your home
Aimed at supporting the construction industry post-COVID-19, the Federal Government’s new HomeBuilder scheme will provide eligible owner-occupiers, including first home buyers, with a grant of $25,000 (tax free) to build a new home or renovate an existing home.
Better yet, it can be combined with 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 Schemes.
So for the canny – and the renovation/new-build ready – there can be considerable savings.
Note: The scheme is estimated to cost the government $680 million but that’s approximate. It is uncapped and driven by demand.
Is your project eligible?
To be eligible, a contract between a licensed or registered builder must be signed between 4 June 2020 and 31 December 2020.
This likely means those who do participate were already on the cusp of hiring someone, but may have been dissuaded by COVID-19-related uncertainties.
It’s important to understand that construction must commence within three months of the contract date, that being the end of March 2021 at the latest.
Are you eligible?
To access HomeBuilder, owner-occupiers must:
- be a person (not a company or trust)
- aged 18 years or older
- an Australian citizen.
You must also conform to income limits.
The HomeBuilder grant is means tested. You must meet one of the following two income caps:
- $125,000 per annum for an individual 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.
Your project must be:
- To build a new home as a principal place of residence, where the property value does not exceed $750,000.
- Or, to 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 does not exceed $1.5 million.
- It’s important to note that renovations must improve the accessibility, liveability and safety of a property. Sheds, pools, granny flats and any other structures not attached to the property are excluded.
How do you apply?
You will be able to apply for HomeBuilder through your 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.
Note: States and Territories will backdate acceptance of HomeBuilder applications to 4 June 2020 once the National Partnership Agreement is signed.
What documentation will I need to provide?
At a minimum:
- Proof of identity.
- A copy of the contract, dated and signed by you and the nominated registered or licensed builder.
- A copy of the builder’s registration or licence (depending on the state you live in).
- A copy of your 2018-19 tax return (or later) to demonstrate your eligibility against the income cap.
- Documents such as council approvals, building contracts or occupation certificates and evidence of land value.
