As part of a further economic response to the coronavirus, this morning the Treasurer announced a new scheme called HomeBuilder that is designed to assist the residential building and construction industry by encouraging the commencement of new home builds and renovations this year.
HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
- 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 per annum for an individual based on your 2018-19 tax return or later; or
– $200,000 per annum 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 (house and land) 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 (house and land) does not exceed $1.5 million. The renovations must improve the accessibility, liveability and safety of the property. There is a specific exclusion for the construction of a tennis court, pool or shed for eligibility purposes.
- Construction must commence within three months of the contract date.
It is important to note that this scheme is restricted to owner-occupied dwellings. If you are seeking to build a new home that will be used as an investment or renovate an existing home which is an investment property, you will not be eligible for HomeBuilder.
This scheme supplements the First Home Loan Deposit Scheme and First Home Buyers Assistance Scheme but is open to all home-owners, not just first home buyers.
If you would like to learn more about HomeBuilder or any other property matters please get in touch with our conveyancing team today.
