Why has the government established this grant?

HomeBuilder is an economic stimulus package that has been designed to create a pipeline of work for the construction industry.

The scheme is aiming at giving the Australian economy a much-needed boost and ensuring that our tradespeople are kept in work throughout this difficult and tumultous period. For a single home build (and for renovations), many different tradees need to be employed to complete the project. This can include:

• Builders
• Bricklayers
• Plumbers
• Painters
• Electricians
• Roof tilers
• Drywallers
• Plasterers
• And many more.

By incentivising you to start your build or renovation project, the government is keeping many different professions in work and building our economy. Having a $150,000 minimum spend on each project will also ensure that the maximum amount of jobs within the industry can be retained with the use of the awarded grant money.

Who is eligible for the grant?

The eligibility criteris for the HomeBuilder grant is fairly tight, with the Government expecting 27,000 people to have access to the grant. For context, there are 7.7 million private dwellings in Australia according to the Australian Bureau of Statistics. However, although the eligibility criteris is extensive, if you are eligible it’s a fantastic opportunity to renovate or get started on building your home.

The eligibility criteria for the HomeBuilder grant is as follows:

• The applicant (or applicants) must be an Australian citizen, aged over 18 years
• Annual income must be below $125,000 for singles, and $200,000 for couples
• For new homes, the total house and land price must be valued at less than $750,000
• For renovations, the total cost must be between $150,000 and $750,000
• The existing home’s value must not exceed $1.5 million
• The building contrcats must be signed between Thursday 4th June and Thursday 31st December.
• Construction work must commence within 3 months of the contract date.
• The initial deposite for the construction must be paid to apply.
• The building work must be completed a registered builder.
• Owner-builders are ineligble
• DIY renovations are ineligble
• Those looking to build or renovate investment properties are ineligible
• Construction must be, to your principle place of residence-swimming pools, tennis courts, granny flats, outdoor spas, garages etc, are not eligible

So, the key takeouts of the eligibility criteris are that your renovation must cost between $15k and $750k (where existing home is valued below $1.5 million) or your new home must cost up to $750k (including the cost of the land).

There is an income cap of $125k for singles and $200k for couples. You need to sign with registered builder by 31st December 2020, and if planning renovations, you must be renovating your main place of residence (for example, pools, garages and tennis courts are not eligible for the grant).

If I have already purchased (or I already own) land, can I still apply?

The types of renovations you can do with the HomeBuilder grant are flexible, as long as they are within the $150,000 to $750,000 eligibility price range. You could a brick or plasterboard walls in your bedroom, loungeroom or kitchen or knock down existing superstructures such as timber frame and replaced with new, create a new open place; opportunities are endless.

Other criteris that must be met includes:

• Renovations must improve the accessibility, liveability and safety of the property. This excluses building a tennis court, pool or shed for the renovation contract for eligibility purposes.
• Any building or renovation contract entered into must be at arm’s length. This means the contract must be made by two parties freely and independently of each other.
• The terms of the contract should be commercially reasonable, and the contract price should not be inflated compared to the fair marketplace.

The HomeBuilder grant means that you can build or renovate your home with some of the beautiful designs. The Geelong Property Consulting team can help you to modernise your existing home and get the maximum benefit from this fantastic opportunity.

How can I apply?

To apply for the HomeBuild grant please follow the link below:

• State Revenue Office (SRO), https://www.sro.vic.gov.au/owning-property/australian-homebuilder-grant

Want to make use of this opportunity?

If you have been considering renovating your existing home or building a new home (and you meet the eligibility criteris), there is no reason not to take advantage of the Government’s new HomeBuilder grant.

Right now, is a great time to use our servcies for your renovation or new home build! To assist with the application process, please feel free to call us on 0431 015 852 or email yasir@geelongpropertyconsulting.com.

Sources:

https://www.sro.vic.gov.au/owning-property/australian-homebuilder-grant

https://www.afr.com/politics/federal/home-builders-get-25-000-grants-20200603-p54yyn

https://treasury.gov.au/coronavirus/homebuilder