HomeBuilder Grant - Everything you need to know

“HomeBuilder 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. HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations this year.” Australian Government Homebuilder Fact Sheet

Australians are jumping at the opportunity to take advantage of the Government’s $25,000 Homebuilder Grant. And so they should. But what do you really need to know?

Forget the media and hype, here’s a simple 1-2-3 on how to access the funds. 

Note: Some of the information and requirement are still to be announced. You need to keep an eye on your State Revenue Department to be sure to get the final details. 

In addition, these grants run alongside existing incentives such as the first home owner’s grant. As such you need to ensure you do your homework and make sure you are getting the benefit of all that is available to you right now.

 1.     Eligibility

2.     Conditions

3.     What the application really involves and how long it could take

 Eligibility

 Applicants must:

• Be an Australian citizen aged 18 years or older and be an individual, not a company or trust.
• Be on an income of less than $200,000 for couples, and $125,000 for singles. Note. This is calculated on your gross income, post tax, excluding superannuation.
• Be spending between $150,000 and $750,000 on a renovation for a home with a pre-renovation value less than $1.5 million.
• Be building a new home worth less than $750,000 (including land value). 

Of utmost importance, the grant is tax free and will apply to all owner-occupiers - not just first home buyers.

In addition, all dwelling types (house, apartment, house and land package, off the plan, etc) are eligible under the HomeBuilder scheme.  

Who and What is NOT Eligible:

The grants are not available to owner-builders.

The grants are not available for those who are planning to build a new home or renovate an existing home as an investment property. The property must be the principle place of residence.

The grant cannot be used for additions to the property that are not connected to the home, such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages.

The grant cannot be used for off-the-plan properties if construction has already commenced prior 4 June 2020. The construction must commence after this date to be eligible.

 Conditions

The building contract must be signed between 4th June 2020 and 31 December 2020 with construction commencing within 3 months of the contract date. 

The contract must be made by two parties freely and independently of each other, and without some special relationship, such as being a relative.

The terms of the contract should be commercially reasonable and the contract price should not be inflated compared to the fair market price.

Renovations or building work must be undertaken by a registered or licenced building service 'contractor' (depending on the state or territory you live in) and named as a builder on the building licence or permit.

What the Application Physically Involves

The State or Territory revenue office will require certain documents to process your application. It is expected that you will need to provide the following at a minimum:

• proof of identity;
• a copy of the contract, dated and signed by you and the nominated registered or licenced 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.

These guidelines are taken from the Government Fact Sheets and certain information is still to be announced, pending State decisions and the signing of the National Partnership Agreement. See the links below for the Australian Government Fact Sheet and FAQ.

When the States and Territories begin accepting HomeBuilder applications, they will backdate acceptance of these applications to 4 June 2020.

Please note, compiling these documents may take time. If you don’t already have your Council approvals, certificates, building contract and valuations, you will need to get your applications in as soon as possible as they can take months to be processed.   

If you have submitted your application and your circumstances change and you no longer meet the eligibility criteria, you will need to notify your State or Territory revenue office immediately. See the links below to check in regularly.

 Important Links:

 Queensland Treasury HomeBuilder Information  

There are regular updates to the Australian Government HomeBuilder Fact Sheet and Frequently Asked Questions, so open them directly from the Treasury website to ensure you are viewing the most up to date version.

 https://treasury.gov.au/coronavirus/homebuilder