HomeBuilder Grant – are you eligible?
It’s Alive! On 4 June 2020 ScoMo announced that the Federal Government would be working with the States to introduce the HomeBuilder Scheme in an effort to boost the economy through a kickstart to the construction industry. The expected increase in residential construction is aimed at filling the gap in construction activity expected in the second half of 2020 due to the coronavirus pandemic. The Homebuilder grant is a one off grant of $25,000 to build a new home, substantially renovate an existing home or to buy an off the plan/new home. The PM announced that while the Federal Government are happy to fund the scheme, it would be up to the States and Territories to sign on to the scheme and administer the grants.
With bated breath purchasers, homeowners, lawyers, conveyancers and bankers in New South Wales have been waiting for Revenue NSW (the NSW Government Agency that will administer the grants) to announce how the scheme would be implemented in New South Wales. The HomeBuilder Portal has now gone live and the wait is over! The grant can be applied for at this site: HomeBuilder Portal.
This grant will be a huge boost to the construction and property industries.
Are you Eligible for the HomeBuilder grant?
You may be eligible if you are:
- A person;
- Aged 18 years or older;
- An Australian citizen; and
- Your income for the last financial year was below $125,000.00 for singles or $200,000.00 for couples.
And, you enter a contract for:
- a comprehensive home building contract to build a new home as your principal place of residence where the property value (house and land) does not exceed $750,000 (inclusive of GST);
- a contract with a registered builder to substantially renovate your principal place of residence where the renovation contract is between $150,000 and $750,000 (inclusive of GST), and where the value of your existing house and land does not exceed $1.5 million. If you own a property (house and land) and demolish the house to rebuild, or your home was destroyed during the 2019/20 NSW bushfires, these will be treated as a substantial renovation, subject to the same values; or
- a contract to purchase an off the plan home/new home as your principal place of residence where the contract price does not exceed $750,000 (inclusive of GST) and construction had not commenced prior to 4 June 2020.
The contract must be signed between 4 June 2020 and 31 December 2020, and the the construction must commence within 3 months of the contract date. There is the possibility of extending the time for commencement of construction in some circumstances.
If you’re looking to buy new newly subdivided vacant land, you need to play close attention to when the land will be ready for you to start building. You need to be able to start the excavation and site works within the 3 months of the contract (plus the possible extension) or you will miss out on the grant.
There’s a few other details to consider:
- you must live in the property for a continuous period of at least 6 months after construction;
- you can only claim the grant once; and,
- the contract must be at arm’s length.