The HomeBuilder scheme is a Federal Government initiative that aims to support the construction industry during the COVID period.
The HomeBuilder package comes in the form of a $25,000 grant to eligible owner-occupiers who to build a new home or substantially renovate an existing property. The scheme will also allow for the purchase of new off-the-plan projects.
When COVID first hit, around 30% of construction projects were put on hold, with most people preferring to take a wait and see approach. The HomeBuilder package aimed to get these projects going again and create jobs in the process as a way of stimulating the economy.
The size and scope of eligible construction and particularly renovation projects have been one key issue surrounding the HomeBuilder package,
What types of projects qualify?
Ø If you are building a new home then it may not be worth over $750,000 after you have completed it
Ø If you are renovating a property, then the project must cost over $150,000, but the property may not be worth over $1,500,000 when finished
Ø Your renovation project must add real value in terms of improving the accessibility, safety of liveability of your home
Ø You do not qualify for the grant if (a) you are an owner-builder or (b) you are building or renovating an investment property
Any type of home you build or renovate will qualify as long as you are an owner-occupier. Apartments, houses, house and land packages, and off-the-plan purchases all qualify for HomeBuilder.
What are the Requirements to Access the Homebuilder Scheme?
Ø You must be aged over 18 and unable to access funds for your project from a company or trust
Ø You must be an owner-occupier who is building or renovating a home with the intention of occupying it
Ø Your annual income must be under $125,000. However, if you are a couple it can be as much as $200,000
Ø Construction and renovation of existing investment properties are specifically excluded
Ø The builder doing the work must have current registration and licence in the state or territory concerned
Ø Applications under the scheme opened 4 June 2020, but the window closes on 31 December 2020
How the HomeBuilder Scheme Will Be Operated
The Australian government has checks and balances in place to ensure applications meet scheme rules.
- Applicants must already have a signed contract with a qualifying builder
- Applicants must ask their bank to apply to their state / territory on their behalf
- The local revenue office will make a recommendation regarding their eligibility
COVID has seen huge incentives being released across the country by both the Federal Government and various states.
In particular, if you are a first-time buyer you might also qualify for stamp duty concessions, the first home owner’s grant, first home super saver scheme and first home loan deposit scheme.