HomeBuilder Grant : The Australian government has announced important changes in the HomeBuilder program. The biggest takeaway is that the government has substantially increased the construction commencement timeframe to avail the HomeBuilder grant from the earlier 6 months to 18 months after the signing of the eligible building contract.
You can read the government’s official factsheet here.
The changes will alleviate fears of aspiring home owners who were worried because many had signed contracts with the builder already, but the construction had not started because the builders were struggling under pressure to complete several works across Australia within the short timeframe of 6 months. The new extension in timeframe which gives 12 more months for the commencement of the build-process comes as a huge relief for homeowners as well as builders. This amendment will ensure that all people who are eligible will get the funding and nobody will miss out because the builders couldn’t start their builds on time
Let’s look at what are some of the eligibility criteria for availing the HomeBuilder grant.
1. HomeBuilder grant application: General Eligibility criteria
HomeBuilder is available to individual applicants and couples who owners as per the certificate of title.
Each applicant must be:
• a natural person (not a company or trust)
• aged 18 years or older
• HomeBuilder is only open to Australian citizens. Accordingly, permanent resident and/or visa holders are not eligible
• When you must be registered on the certificate of title as the owner of the land or property depends on the type of contract you enter into:
o For contracts to build, you must be registered on title as the land owner before the laying of foundations and the first progress payment to the builder.
o For substantial renovations, you must be the owner of the property at the start of the contract for renovation works.
o For off the plan/new homes, you must be the owner of the property when the building is completed.
Applicant(s) must be below one of the following two income caps
o $125,000 per annum for an individual based on either your 2018-19 or 2019-20 taxable income, as per your notice of assessment issued by the Australian Taxation Office or
o $200,000 per annum for a couple based on either your combined 2018-19 or 2019-20 taxable income, as shown on your notices of assessment issued by the Australian Taxation Office.
2. Eligible contracts signed between 4 June and 31 December 2020
A $25,000 HomeBuilder Grant is available for one of the following contracts signed between 4 June 2020 and 31 December 2020:
• a comprehensive home building contract to build a new home whose value does not exceed $750,000.
• a contract with a registered builder to substantially renovate your principal place of residence where the renovation contract is between $150,000 and $750,000 and where the value of your existing house and land does not exceed $1.5 million.
• a contract to purchase an off the plan home/new home where the contract price does not exceed $750,000 provided the construction started after 4 June 2020.
3. Eligible Contracts signed between 1 January 2021 and 31 March 2021
A $15,000 HomeBuilder Grant for contracts signed between 1 January 2021 and 31 March 2021
• a comprehensive(new) home building contract to build a new home whose value is below $950,000.
• a contract with a registered builder to substantially renovate your home where the renovation contract is between $150,000 and $750,000 and where the value of your existing house and land is below $1.5 million.
Note: For a demolition and rebuild to come under the substantial renovation category, both the demolition and rebuild must occur on or after 4 June 2020.
• a contract to purchase an off the plan home/new home whose contract price does not exceed $950,000 (inclusive of GST) and construction commenced after 4 June 2020.
4. For Contracts signed in both timeframes:
• Construction must be undertaken by a registered or licensed building service ‘contractor’ who is named on the building license or permit.
• If your home was destroyed during the 2019/20 NSW bushfires, these will be treated as a substantial renovation.
As a licensed builder that specializes in the quality and finish of each home we build, rather than on their numbers, Integrity New Homes Brisbane combine an impressive track record of collective experience in new home constructions, especially in areas around Tweed Heads, Murwillumbah, Kingscliff, Pottsville, Duranbah, Chinderah, Casuarina, and Condong.
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