Are you thinking of beginning a new home build or substantially renovating your existing home? If so, have you checked whether you’re eligible for the federal government’s HomeBuilder grant? With only a month to go until the deadline, now is the time to find out!
The tax-free $25,000 grant towards a new build or renovation is an opportunity you don’t want to miss. The grant is designed to give a much-needed boost to the residential construction market by encouraging substantive new building activity. That means HomeBuilder is a win-win for both residential building companies and those looking to build their dream home.
So far, the uptake of the HomeBuilder grant has been very successful. As at 6 November, over 19,000 applications had been made for new builds, and another 4,600 for substantial renovations, taking the total to almost 24,000. Victoria topped the list for the most applications (at 7,636), followed by Queensland (at 5,954), and then New South Wales (at 4,350). It should be noted that not all these applications have been assessed for eligibility yet though.
How Do I Know If I’m Eligible?
To be access the HomeBuilder grant, you must be an eligible owner-occupier. This means you must meet the following criteria:
You are applying as a natural person, rather than a company or trust You are over 18 years old You have Australian citizenship As an individual applicant, your income is below $125,000 per annum based on your taxable income as of 2018-19 or later If applying as a couple, your joint income is below $200,000 per annum based on your taxable income as of 2018-19 or later You have a building contract to either build a new home with a property value not exceeding $750,000 to be your primary place of residence, or substantially renovate your existing primary place of residence so long as the renovation contract is between $150,000 and $750,000 and the pre-renovation home value does not exceed $1.5 million You must enter into the aforementioned building contract between 4 June 2020 and 31 December 2020 Construction must commence within three months of the contract date and not before 4 June 2020 (except in Victoria, where the build can commence any time prior to 30 June 2021)
So I’m Eligible, But How Do I Apply?
If you are still with us, that means it’s time to start your application.
Your application, along with all the supporting documentation, must be received by your relevant State or Territory Revenue Office no later than the 31 December this year. Finding the application form on the website of your state or territory’s Revenue Office is easy.
Most jurisdictions allow you to use online customer portals to lodge your application, making the process even more streamlined. While it’s not too late to submit your application, it is time to get a move on.
When Will My Grant Be Paid?
For a new build, you will receive the grant after the first progress payment has been made to your builder.
For substantial renovations, you will receive the grant when at least $150,000 of the contract has been paid.
For off-the-plan home purchases, you will receive the grant once your name is registered on the title.
Need Help Getting Started?
With so many HomeBuilder grant applications received already, many builders have limited availability before the cut off dates. But, there are some builders who can still help, particularly in Victoria where the construction start date has been extended to 30 June 2021. Plus, there is still titled land or land titling available in the first quarter of 2021.
The team at Homeshelf has a wealth of experience recommending plans to suit your design needs, block and budget. We also have an expansive directory of builders, which means we can facilitate the perfect match based on your budget and requirements—as well as the availability of the builders.
New builds and renovations can be stressful at the best of times, let alone with a looming deadline. Enquire for free with us today to see how we can help eliminate stress from the process!