The Federal Government HomeBuilder scheme provides eligible applicants with a grant of $25,000 to build a new home, substantially renovate an existing home or buy on off the plan home/new house. The scheme is a tax-free grant and is estimated to support 140,000 jobs across the country.
The HomeBuilder grant is available to applicants who:
- are an Australian citizen aged 18 years or over;
- are a person, not a company or trust;
- have an individual annual income below $125,000 or a combined income of less than $200,000 a year based on 2018-19 tax returns;
- have a property located in Victoria;
- will use the property as their principal place of residence; and
- the property is owned or will be owned, by the applicants.
The HomeBuilder Grant is available for one of the following contracts signed between 4 June 2020 and 31 December 2020 (inclusive):
- a comprehensive home building contract to build a new home as the applicant’s principal place of residence where the property value (house and land value) does not exceed $750,000 inclusive of GST;
- a contract with a registered builder to substantially renovate the applicant’s principal place of residence where the renovation contract is between $150,000 and $750,000 inclusive of GST, and where the value of the existing house and land does not exceed $1.5 million;
- a contract with a registered builder to demolish an existing house to rebuild a new dwelling to be the applicant’s principal place of residence where the contract is between $150,000 and $750,000 inclusive of GST, and where the value of the existing house and land does not exceed $1.5 million; or
- a contract to purchase an off-the-plan home/new home as the applicant’s principal place of residence where the contract price does not exceed $750,000 inclusive of GST and construction had not commenced before 4 June 2020.
There are no prescribed dwellings which means that all property types will be eligible for the scheme including off the plan houses, apartments and house and land packages. However, the HomeBuilder Grant cannot be used for swimming pools and garages.
If you want to take advantage of HomeBuilder Grant, you will need to apply through the State Revenue Office’s online application portal.
The Australian Government has a fact sheet with frequently asked questions. Please see https://treasury.gov.au/coronavirus/homebuilder for further information.
Liability limited by a scheme approved under Professional Standards Legislation.
The information on this website is of a general nature only. It is not, nor is it intended to be legal advice. You should consult a lawyer for individual advice about your particular circumstances.