ANNOUNCED in early June, HomeBuilder was the fourth major economic stimulus package delivered by the Federal Government in response to the COVID-19 pandemic in an effort to address the decline and subsequent critical status of the building industry.
The decision to introduce the HomeBuilder grants came after advice to the Federal Government that the building industry was predicted to see a national decline of an estimated 30,000 new home builds, previously due to take place in the second half of 2020.
It’s a decision that has seen the Government commit a total of $688 million to successful applicants of the HomeBuilder grants.
Great Estates Magazine believes the Federal Government’s $25,000 HomeBuilder grant, coupled with the State Government’s $20,000 regional First Home Buyer Grant, have dramatically boosted interest in land, new homes, and home improvement investments.
So, what exactly is the HomeBuilder stimulus package?
HomeBuilder is a time-limited, tax-free $25,000 grant for owner-occupiers who commit to new home builds under $750,000 (that’s the total market value of house and land), or carry out substantial renovation projects with a cost value in excess of $150,000.
Who is eligible?
Applicants must be Australian citizens over the age of 18 and either an individual with an income no greater than $125,000 per annum or; a couple with a combined income that does not exceed $200,000 per annum. Applications cannot be made on behalf of a company or trust.
Time-sensitive conditions
New building contracts must be signed between June 4 and December 31, 2020, this includes sales contracts for new builds where building commences after June 4, 2020.
An existing home that has already been completed or started construction before June 4, will not qualify for HomeBuilder.
As the objective of the package is to stimulate the industry and provide work for trade qualified building industry professionals, owner builders will not be eligible to receive the grant.
For more information visit: https://treasury.gov.au/coronavirus/homebuilder
