You may have heard of the HomeBuilder grant of $25,000 announced by the Federal Government on 4 June 2020.
What is HomeBuilder?
HomeBuilder is an uncapped, time-limited and tax-free program introduced to help the residential construction market by encouraging the commencement of new home builds and renovations in 2020.
Who can apply?
You are looking to buy a house and land package
HomeBuilder applies to prospective buyers of house and land packages or off-the-plan apartments, who will also be the owner occupiers of that property.
If the new home will be used as an investment property, the prospective buyers will not be eligible for HomeBuilder.
The total value of the land and the build cannot exceed $750,000.
You can apply even if you are not a first-home buyer, provided you meet the eligibility criteria (see below).
You already own land but want to build on the land
HomeBuilder applies to owners of vacant land who build on that land.
If the new home will be used as an investment property, the owner will not be eligible for HomeBuilder.
The total value of the land and the new build cannot exceed $750,000.
You are looking to substantially renovate an existing home (including knocking the house down to rebuild)
HomeBuilder applies to owner-occupiers looking to substantially renovate an existing home as a principal place of residence. This includes knocking down the house to rebuild it.
The renovation contract must be between $150,000 and $750,000. Also, the total value of the existing property (including house and land) must not exceed $1.5 million.
The renovation work must be to improve the accessibility, liveability and safety of the dwelling. It cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).
Eligibility criteria
If one of the above scenarios applies to you, to access HomeBuilder you must satisfy the following eligibility criteria. The applicant must:
- be a natural person (not a company or trust);
- be at least 18 years of age;
- be an Australian citizen;
- either:
- for individuals – receive up to $125,000 per annum based on 2018-2019 tax return or later;
- for couples – receive up to $200,000 per annum based on both 2018-2019 tax returns or later; and
- sign the building contract between 4 June 2020 and 31 December 2020.
Building contract requirements
HomeBuilder is not available to owner-builders. HomeBuilder will only be available to you if you have signed a building contract with a licensed builder for a commercially reasonable contract price in comparison to the fair market place.
The contract must be signed between 4 June 2020 and 31 December 2020 and construction or renovation must commence within three months of the contract date.
How can I apply?
For NSW related applications, you will apply for HomeBuilder to Revenue NSW. Currently, details about when and how to apply for HomeBuilder are still being finalised.
Once Revenue NSW commence acceptance of applications, they will backdate the applications from 4 June 2020.
You will likely need to provide supporting documentation with your application such as proof of identity, a copy of the dated and signed building contract, a copy of the builder’s licence and a copy of your 2018-2019 (or later) tax return. More information on the documentation you will need to provide will become available through Revenue NSW.
When will I receive the grant?
If the application is successful, the HomeBuilder grant of $25,000 will be paid by the NSW government authority (Revenue NSW) directly to the applicant.