HomeBuilder grant – everything you need to know to receive $25k for your new custom home or renovations
As an economic response to the COVID-19 pandemic, the Australian government has announced the HomeBuilder grant to eligible home owners and first home buyers to build a new home or substantially renovate an existing home.This is great news for homeowners who are looking to build a new custom home and should consider this grant to offset the cost of their home building. You can also use this grant for major renovations and additions to your existing family home. Let’s delve into a few more details about the HomeBuilder grant and if you meet the criteria for the grant.
HomeBuilder grant – everything you need to know to receive $25k for your new custom home or renovations
As an economic response to the COVID-19 pandemic, the Australian government has announced the HomeBuilder grant to eligible home owners and first home buyers to build a new home or substantially renovate an existing home.This is great news for homeowners who are looking to build a new custom home and should consider this grant to offset the cost of their home building. You can also use this grant for major renovations and additions to your existing family home.
Let’s delve into a few more details about the HomeBuilder grant and if you meet the criteria for the grant.
Granny Flat, Turramurra, from SBR Group's Portfolio Gallery in Sydney, NSW.
What is the HomeBuilder grant?
The HomeBuilder grant is a $25,000 one off payment to homeowners who are or will be undertaking a new home build or renovations to their exiting home of which the total cost is over $150,000. There are certain criteria you must meet to be eligible for the grant.
Who is eligible for the government home improvement grant?
To access the HomeBuilder grants, owner occupiers must meet the following eligibility criteria:
- you are a natural person (the property is not in the name of a company or trust);
- you are aged 18 years or older;
- 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 taxable income or later; or
- $200,000 per annum for a couple based on both 2018â€19 taxable income or later;
- you enter into a building contract between 4 June 2020 and 31 December 2020 to either:
- build a new home as a principal place of residence, where the property value does not exceed $750,000; or
- 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 (pre-renovation);
- construction must commence on or after 4 June and within three months of the contract date.
How much is the home builder grant?
The HomeBuilder grant is a one-off payment of $25,000 to homeowners building a new home or renovating to the value of over $150,000.
Where do I claim the Homebuilder grant?
To claim the grant, you must pay your licenced builder the first instalment for starting the building works by 31 December 2020. You can then apply for the grant through your state or territory revenue office.
What home renovations are included in the homebuilder grant?
Home renovations between the cost of $150,000 to $750,000, and that improve the accessibility, liveability and safety of the property.
What home renovations are NOT included in the homebuilder grant?
The building of a pool, tennis court or shed for the renovation contract will not be included in the renovation contract for eligibility purposes.
Does the grant apply to off-the-plan apartment or townhouses?
Yes, townhouses and off-the-plan apartments are eligible for HomeBuilder grant if you sign the contract to buy the off-the-plan dwelling on or after 4 June 2020 and on or before 31 December 2020. Construction must commence on or after 4 June 2020 and no later than three months after the contract is signed.
If you sign the contract to buy the dwelling after 4 June 2020 and construction began on the home before 4 June 2020, then the home does not qualify for the HomeBuilder grant.
If you sign the contract to buy the dwelling after 4 June 2020 and construction began on the home before 4 June 2020, then the home does not qualify for the HomeBuilder grant.
Can I claim the grant as well as other government home grants like the First Time Home Owners (FHOG) grant?
Yes, the grant can be claimed in addition to the first homeowners grant in most states. See the revenue office in your state or territory for more details and eligibility.
Links to each of the revenue offices are provided below.
Links to each of the revenue offices are provided below.
How can I get the $25k grant?
You apply for the Home Builder grant through your state or territory revenue office.
Are permanent residents eligible to get the HomeBuilder grant?
No, permanent residents are unable to claim the HomeBuilder grant. The homeowner must be an Australian citizen.
I already have a block of land, but haven’t signed a contract to build a new home, can I still claim the $25k grant?
Yes, if you owned the land before 4 June 2020 and enter into a building contract before 31 December 2020 and commence construction within 3 months of signing the contract.
Who is not eligible for the HomeBuilders grant?
HomeBuilder is not available for investment properties or to owner-builders.
Will the HomeBuilder grant be extended?
At this stage, the HomeBuilder grant ends as at 31st December 2020, however, the building and construction industry are pushing to extend it for another year. We will keep you updated on extensions to the closing date.
How do I apply for the home builders grant?
Your licenced builder will need to have started the building works or you have paid your home builder the first instalment for starting the building works by 31 December 2020. You can then apply to your state or territory revenue office to claim the $25,000 grant.
What are the steps to apply for the HomeBuilders grant?
After you are satisfied you meet the eligibility criteria for the HomeBuilders grant -
- Enter into a building contract with your chosen licenced Sydney builder and pay the first instalment of the contracted price. HomeBuilder is available for building contracts signed between 4 June 2020 and 31 December 2020.
- Ensure that the build start date is within three months of your building contract date.
- Apply to your state or territory revenue office to claim the HomeBuilder grant. You will need to show proof of your identity, the signed building contract by both the homeowner and builder, a copy of the builders registration or licence (depending on the state you live in), a copy of your 2019-20 tax return to prove your income, other documents such as council approvals, building contracts or occupation certificates and evidence of land value.
- You will be notified by the revenue office of the outcome.
state or territory’s revenue offices' link:
- NSW
- Victoria
- Queensland
- South Australia
- Western Australia
- Northern Territory
(please note this HomeBuilder grant is in addition to the 2019 BuildBonus) - Tasmania
(Includes the Tasmanian HomeBuilder Grant for new homes and the Commonwealth HomeBuilder Grant)
If you are not quite ready to build your new home or start the renovations or think your new build or renovation may miss the cut-off date of 31 December 2020, enter your email address below. We will let you know the details if the Home Builder grant is extended beyond its 31 December 2020 closing date.
The SBR Group team of Sydney builders for custom homes and renovations would be happy to have a chat to you about what you need to consider to be eligible for the HomeBuilder grant. Contact us here.
SBR Group Pty. Ltd.
Suite 403, 5-9 Devlin StreetRyde,NSW 2112
Phone: 1300 676 166
Website:
https://www.sbrgroup.com.au
https://www.sbrgroup.com.au
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