The Australian Government has implemented a time-limited grant (HomeBuilder) to boost the residential construction market in response to the economic impact of COVID-19. HomeBuilder will distribute $25,000 tax free to eligible owner-occupiers to build a new home or substantially renovate an existing home where the contract has been signed between 4th June 2020 and 31st December 2020.
The government has released recent changes to the HomeBuilder program on the 18th June 2020, allowing for off-the-plan apartments or townhouses and delays in commencement of construction beyond 3 months of contract date due to unforeseen factors (e.g delays in building approvals).
How do I get it?
Eligible owner-occupiers will be able to apply for HomeBuilder through their State or Territory revenue office, unfortunately, New South Wales and other respective states are delayed in their bureaucratic affairs and have yet to sign the National Partnership Agreement allowing for acceptance of HomeBuilder applications. Once the agreement has been signed, applications will be backdated to 4th June 2020.
You can register your interest to receive updates when more information will be available at the Treasury Coronavirus Website.
Am i Eligible?
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
You are purchasing or renovating as an individual (not a company or trust)
You are 18 years or older
You are an Australian Citizen
If you are single; your taxable income must be below $125,000 p.a based on your 2018-2019 tax return or later
For couples; your combined taxable income must be below $200,000 p.a based on both of your 2018-2019 tax returns or later
You enter into a building contract between 4th June 2020 and 31st December 2020 to either:
Build a new home as a principle place of residence, where the property value does not exceed $750,000, or
Renovate your existing home as a principal place of residence, where the renovation contact is between $150,000-$750,000, and where the value of your home (house and land) does not exceed $1.5 million (pre-renovation)
Construction must commence on or after 4th June 2020 and within 3 months of the contract date.
Want more information regarding the HomeBuilder grant?
For further important information regarding the HomeBuilder grant, please visit the Treasury Coronavirus Website or contact a Rex Home Loans representative today and we can help you find out how this fits into a home loan or construction loan.