HomeBuilder Scheme

The HomeBuilder Scheme is a $25,000 non-taxable grant for owner occupiers to build a new home or substantially renovate an existing home (unfortunately, this grant is not available for investment properties). It was established with the expectation to assist the residential construction market by encouraging the commencement of new home builds and renovations.

Though there are a couple of restrictions…and as usual some hoops to jump through to be eligible.

The works from the grant must improve the liveability of the dwelling e.g. not available for swimming pools/tennis courts/unconnected structures. And (good news for some) you do not have to be a first home buyer, but you do have to reside in the property on completion.

So Am I Eligible? Well, to be eligible you must meet ALL of the following:

• You are a natural person (not 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 p/a for an individual based on your 2018-19 tax return or later; or
  • $200,000 p/a for a couple based on both 2018-19 tax returns 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;
• Construction must commence within three months of the contract date.

Now the scheme will be implemented nationally, but will utilise states and territories for applications and disbursements of funds. There is no estimated application open date at present, but once open, applications will be backdated to the commencement of the scheme. Information on when and how you will be able to apply will become available through the relevant State or Territory revenue office in due course.

– Jamie Newling

Posted 19.06.2020

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.