What is the HomeBuilder grant?
It is a $25,000 tax-free grant given to eligible owner-occupiers, including first home buyers.
With the HomeBuilder extension, contracts signed between 1 January 2021 and 31 March 2021 are eligible for a $15,000 grant.
The grant can be used to:
Build a new home
Renovate an existing home
The HomeBuilder grant is a federal scheme designed to help the Australian residential construction market continue business in the wake of the Coronavirus.
The Treasurer announced that the HomeBuilder grant will be extended to 31 March 2021.
The grant was originally available until 31 December 2020.
The extended HomeBuilder applications will be accepted under the new criteria:
The HomeBuilder grant is $15,000 for new builds and substantial renovations signed between 1 January 2021 and 31 March 2021.
The property price threshold for new build contracts for New South Wales is $950,000 and for Victoria, it is $850,000. The existing price cap of $750,000 will continue for the remaining States and Territories.
Applications must be submitted to the respective State Revenue Office by 14 April 2021.
For contracts signed on or after 29 November 2020, the builder/developer must have a valid licence or registration before 29 November 2020. For contracts signed before 29 November 2020, they must have a valid licence before 4 June 2020.
Who is eligible for the HomeBuilder grant?
The grant is available for first home buyers and existing homeowners.
To qualify for the HomeBuilder grant:
You must spend at least $150,000 (and up to $750,000) on home renovations.
The value of the property you’re renovating must not exceed $1.5 million.
For new builds, the value of the property must not exceed $750,000. With the grant extension, the property price thresholds for NSW and Victoria have increased to $950,000 and $850,000 respectively.
You must be 18 years or older.
Only Australian citizens can apply. (Companies and trusts are not allowed).
The construction must start within three months of the building contract date.
You have to enter the HomeBuilder scheme between 4 June 2020 to 31 December 2020. It has now been extended to 31 March 2021.
Unfortunately, property investors and owner builders are not eligible.
For more information please feel free to contact our friendly consultant.