What you need to know about the HomeBuilder grant

If you are thinking of building or renovating, now is the time to do it! The HomeBuilder Grant 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.

If you meet the following criteria, you’re eligible!

·        You are a natural person (not a company or trust)

·        You are aged 18 years or over

·        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 both2018-19 tax returns or later

·        You build a new home as a principal place of residence, where the property value does not exceed $750,000

OR

·        You 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 the existing property does not exceed $1.5 million

To secure this grant you must…

·        Sign a contract with a Builder between 4 June 2020 and 31 December 2020.

·        Commence construction within 3 months of the contract date.

·        Build a new home or renovate an existing home as your principal residence. (Investment properties are ineligible for HomeBuilder.)

·        Have the work undertaken by a registered or licenced building service ‘contractor’ named as a builder on the building licence or permit.

The above information comes from www.treasury.gov.au

Should I take advantage of the grant?

If you are already thinking of building or renovating, why not?

What should I use the $25,000 for?

This money might be enough to get you across the line if your budget is tight, or it could create opportunity. Think about a kitchen upgrade or adding solar panels.

Why is the government boosting the construction industry?

HomeBuilder is intended to kick start the economy after the impact of COVID-19. The construction industry is the third largest employer in Australia (over 1 million people), so this grant will ensure job security for a lot of tradies and suppliers, as well as benefit home builders who may have suffered a reduction in income. The flow on effect means that employed construction workers will have more money to spend in their local community.

Do’s and Don’ts

Do your research. Make sure you choose a reputable, licensed builder.

Don’t rush. Assess your budget carefully and only commit if you are ready.

Do use the grant money to add value to your property.

Do make contact with your local builder to discuss this further. A good builder should be able to work with you to help you achieve your goals.