Over the last week, you may have seen the announcement of the government's HomeBuilder grants, which will be facilitated through your State or Territory Revenue Office.

This new scheme provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.

There are a number of eligibility requirements for both builders and renovators. Here's some more information to help you understand what's on offer and what's needed to qualify.

Who can access it?

  • Owner-occupiers must be individuals, not a company or trust
  • Be an Australian citizen
  • Over the age of 18
  • Meet one of two income caps - individuals earning under $125 000 and couples earning under $200 000 (based on 2018-19 tax returns or later).

When can I start?

  • The grant is eligible to individuals who enter a building contract between 4 June and 31 December 2020
  • Work must begin within three months
  • Building a new home as a principal place of residence valued up to $ 750 000
    (including land).

For those renovating

  • Value of work between $150,000 - $750,000
  • The value of your home is less than $1,500,000
  • Must be undertaken by a licensed building contractor (you cannot owner/build)
  • Renovations can be a combination of works (for example a kitchen and bathroom.

What's excluded?

  • Renovations must improve the liveability of the home. It cannot be used for swimming pools, tennis courts, outdoor spas or detached sheds
  • Owner-builders and those seeking to build a new home or renovate an existing home as an investment are ineligible
  • The building contractor can not be a relative.

While the application process required for each state will vary, we're here to help answer any questions you may have. If you'd like to discuss what grants you might be eligible for or how we could assist with lending to suit your situation, please contact us today.

Source: https://treasury.gov.au/coronavirus/homebuilder - Information effective 10 June 2020 and may be subject to change

Posted in Finance.