The Government’s new “HomeBuilder” scheme – Free $25,000 cash bonus. Find out how you can be eligible before it ends.
Do you want to renovate your existing home or build a new one? The Government’s $25,000 handout could be very helpful in making your dream home come true.
The Morrison Government has just announced a dedication of approximately $688 million to stimulate the building and construction industry. The accessibility of the scheme to NSW residents will be dependent on when NSW signs the relevant National Partnership Agreement and will then be accessible through the Revenue NSW site or the application can be facilitated through your bank.
What is the HomeBuilder scheme?
The scheme intends to provide eligible applicants with a non-taxable $25,000 grant for new homes and substantial home renovations.
The scheme is temporary and will only operate from 4 June 2020 to 31 December 2020. A requirement of the scheme is that the substantial renovation or build must start within three months of you entering into a building or renovation contract.
Who is Eligible?
There are a number of criteria you are required to meet in order to be eligible. These include:
- You must be an Australian Citizenship;
- You must be an Individual over the age of 18;
- You must intend to occupy the home (you are building or renovating) as your principle place of residence;
- You must satisfy the income thresholds (means tested) being:
- Singles with an income of less than $125,000.00; and
- Couples with a combined income of less than $200,000.00.
- You must also satisfy the value requirements:
- If the grant is for the purpose of a new home, the property value must be less than $750,000.00; and
- If the grant is for the purpose of renovation on an existing property, the total value of the property must be less than $1.5 million; and
- In relation to substantial home renovations, you must spend more than $150,000.00 and less than $750,000.00.
It is important to note that the scheme does not provide for those who intend to renovate investment properties or owner-builders, nor is it available to trusts, companies, non-Australian citizen or those under 18.
The scheme also requires that the parties to any building contract be free and independent of each other, meaning that related parties such as relatives cannot enter into a contract for the renovations or build.
What can I build or renovate with the HomeBuilder grant?
The grant is intended to be used for the construction of a new house or to facilitate substantial renovations of bathrooms and kitchens etc, so long as you meet the required minimum spend. The grant cannot be used for disconnected additions such as pools and tennis courts which exist outside the house.
Can HomeBuilder be used in conjunction with other schemes?
Yes, absolutely. HomeBuilder may be used with other schemes offered in your relevant state depending on your eligibility. In NSW, residents can potentially enjoy the benefits of multiple schemes simultaneously as shown below.
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Example – Jane and Adam are first home buyers purchasing a new home and land package for $650,000.00 in NSW. They are both over the age of 18, Australian residents and are earning a combined income of less than $200,000.00. Jane and Adam’s bank applies for the HomeBuilder scheme on their behalf and the application is successful.Jane and Adam would also be eligible for the following:
The savings for Jane and Adam would be almost $35,000.00 with the added bonus of the $10,000.00 First Home Owners Grant. Coupled with the additional $25,000.00 from the new HomeBuilder scheme, you could be getting almost $80,000.00 in savings and grants. |
If you require any further information regarding the HomeBuilder scheme please feel free to contact Ben Wong on bwong@marsdens.net.au or by phoning 02 4626 5077.
There is also additional information on the HomeBuilder scheme provided on the Federal Treasury website. Links below:
è HomeBuilder https://treasury.gov.au/sites/default/files/2020-06/Fact_sheet_HomeBuilder.pdf
è HomeBuilder - Frequently asked questions https://treasury.gov.au/sites/default/files/2020-06/HomeBuilder_Frequently_asked_questions.pdf
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
