A $25,000 HomeBuilder Grant for Australians looking to build a new home or substantially renovate an existing home was announced today, Thursday 4th June 2020. The Australian Government have designed the program to assist the residential construction market by encouraging the commencement of new home builds and renovations.

Eligible owner occupiers who sign a building contract between today and 31 December 2020 to either construct a new home or substantially renovate an existing property will receive a $25,000 non-taxable grant towards the building costs.

For first home buyers, the HomeBuilder Grant can be used in addition to existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

Prime Minister Scott Morrison said the investment wasn’t just about helping Australians bring their dream home to life, but supporting the more than one million builders, painters, plumbers and electricians across the country.

“This is about targeted taxpayer support for a limited time using existing systems to ensure the money gets used how it should by families looking for that bit of extra help to make significant investments themselves,” Mr Morrison said.

Homebuilder Grant Eligibility Criteria

  • Only available to natural persons (not a company or trust)
  • Persons must be Australian citizens aged 18 years and over
  • Singles must have an annual income of maximum $125,000 per annum for an individual applicant or $200,000 for a couple (based on your 2018-19 tax returns or later)
  • The property to be constructed or renovated must be an owner-occupied property, investment properties are not eligible.
  • Building contract must be signed between 4 June & 31 December 2020
  • Construction must commence within three months of the contract date
  • Building work must be undertaken by a registered or licenced building service ‘contractor’ and named as a builder on the building licence or permit. Last updated: 4 June 2020. Owner builders are not eligible.
  • In negotiating a building contact, the parties must deal with each other at arm’s length. This means the contract must be made by two parties freely and independently of each other, and without some special relationship, such as being a relative
  • New home builds must be for a principal place of residence, with maximum property value, including land, of $750,000
  • Renovations must be for a principal place of residence where the value of the existing property does not exceed $1.5 million and the renovation contract is between $150,000 – $750,000
  • Renovation works must be to improve the accessibility, safety and liveability of the dwelling. It cannot be for additions not connected to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages

Download the Homebuilder fact sheet

Contact an Assured Lending Mortgage Broker for more information today

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.