In a bid to boost the economy and help out the construction industry, the Federal Government recently announced a $680 million HomeBuilder Scheme. This news has generated a lot of excitement as well as confusion as people are not entirely sure who’s eligible and who’s not. Platinum Lawyers has put together this guide to answer some of the most common questions with regards to the HomeBuilder grant.
What is the new HomeBuilder Grant?
It’s a tax-free payment of $25,000 offered by the government to eligible homeowners to build a new home or substantially renovate their existing homes.
When should I apply for it?
Applications are now being accepted and the last date for sending in the applications is 31, December 2020.
Is the HomeBuilder scheme only for first home buyers?
No, it’s for any property owner who meets the eligibility requirements. To determine if you qualify, read the eligibility requirements listed below.
Who is eligible?
Only those who meet the following criteria are eligible for the HomeBuilder grant:
- You must be an individual (not a company or a trust).
- You must be 18 years or older.
- You must be an Australian citizen.
- You must be an owner-occupier (which means it will be your principal place of residence).
- If you’re single, your annual taxable income must be less than $125,000 (as per your 2018-2019 or later tax returns).
- If you’re a couple, your annual taxable income must be less than $200,000 (as per your 2018-2019 or later tax returns).
- You must enter into a building contract between June 4, 2020 and December 31, 2020.
- If you’re building a new home the property value (house and land) must not exceed $750,000.
- If you’re buying an off-the-plan home, the contract price must not exceed $750,000.
- If you’re renovating an existing home, the renovation contract must be valued between $150,000 and $750,000. Another caveat to be noted here is that the property’s pre-renovation value (house and land) must not exceed $1.5 million.
- Construction must begin on or after 4, June 20 and within three months of the contract date.
Are all home renovations eligible for the grant?
Unfortunately, no. Renovations are only eligible if they substantially alter the existing dwelling, improving the safety, liveability or accessibility of the property. Renovations that would not qualify for the grant include swimming pools, granny flats, sheds, standalone structures such as outdoor spas, saunas and garages, tennis courts and other non-essential renovations.
Can I apply for other housing grants offered by my State if I’m applying for the HomeBuilder grant?
Yes, you can. The HomeBuilder Grant will not affect your eligibility for other housing grants offered by your state in anyway. For instance, you can access both the HomeBuilder grant as well as the First Home Buyer grant, as long as you qualify.
Are you a first home buyer looking for an Experienced Conveyancer in Sydney? Contact Platinum Lawyers. Our team of property lawyers and conveyancers will provide you with smooth, hassle-free conveyancing so you can enjoy your home buying experience and leave all the boring paperwork and nitty-gritty details to us.
CALL (02) 8084 2764