The Australian government has initiated the HomeBuilder grant program to stimulate the residential construction sector and help safeguard the jobs of one million tradesmen around the country.
It comes as the building sector faces a significant drop of 22% for homes approved for construction and 13.2% for alterations and additions, figures released by the Australian Bureau of Statistics.
The HomeBuilder grant will subsidise up to $25,000 of construction costs for those eligible. It can be used for first homeowners as well as existing homeowners who are looking to either build a new home or substantially renovate your existing home.
The following eligibility criteria will apply:
- An income cap of $125,000 pa for an individual or $200,000 pa for a couple (based on either 2018-19 or 2019-20 tax return).
- The building contract must be entered into between 4 June 2020 and 31 December 2020 and construction must commence within three months of the contract date.
- For building new homes:
- New home must be occupied as a principal place of residence
- Post-renovation value of the new build (including land) must not exceed $750,000
- For substantial renovations to existing homes:
- The commercial contract price must be between $150,000 and $750,000, this includes a knock-down and rebuild.
- Pre-renovation value of the property must not exceed $1.5 million.
- Renovations cannot include additions such as pools, spas, sheds, or garages; it should improve the accessibility, safety or liveability of a home.
- Not available to companies or trusts, including SMSFs
- Not available to owner-builders
The Treasury Press release says to contact your state or territory authority to apply. At the time of writing there was no information published on the NSW Revenue website.
For more information, visit the Homebuilder Fact Sheet or speak with Align Financial to see if you are eligible.
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Disclaimer: This post has been prepared for general information purposes only. It is not specific advice to any particular person. You should consult an authorised Align Financial adviser before making financial decisions. Align Financial | Financial Planner Northern Beaches | Servicing North Narrabeen, Narrabeen, Mona Vale, Elanora Heights, Newport, Avalon, Palm Beach | Enquire with us online.