Treasury has announced a new time-limited grant program HomeBuilder to help the residential construction market to bounce back from the Coronavirus crisis. The grant 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.
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
- you are a natural person (not a company or trust);
- you are aged 18 years or older;
- you are an Australian citizen;
- you meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- you enter into a building contract between 4 June 2020 and 31 December 2020 to either:
- build a new home as a principal place of residence, where the property value does not exceed $750,000 including the land; or
- substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your property prior to renovating is less than $1.5 million;
- construction must commence within three months of the contract date.
Some important notes:
Owner-builders and those seeking to build a new home or renovate an existing home as an investment property are ineligible for HomeBuilder.
Additionally, renovation works must be to improve the accessibility, safety, and livability of the dwelling. It cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds.
In negotiating a building contract, the parties must deal with each other at arm’s length. This means the contract must be made by two parties freely and independently of each other, and without some special relationship, such as being a relative.
The terms of the contract must be commercially feasible, and the contract price not inflated compared to the fair market price. Renovations or building work must be undertaken by a registered or licensed building service “contractor” (under relevant state or territory laws) and named as the builder on the building license or permit.
For more information, check out the Treasury website.
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