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The federal government's HomeBuilder scheme provides cash grants to Australian citizens (not permanent residents) building a new home or making a substantial renovation to an existing home.
The grant is designed to stimulate the Australian economy in the wake of the coronavirus pandemic and recession. But while generous, there are eligibility criteria relating to both the size of the renovation, the value of the property and your income, which mean that not every homeowner or builder will qualify.
Here's what you need to know.
Initially HomeBuilder was a $25,000 grant, available to eligible Australians who signed a contract to build or renovate a home between 4 June 2020 and 31 December 2020. HomeBuilder was extended into 2021 but the grant is now $15,000. For 2021 your contract to build or renovate your home must be signed between 1 January 2021 and 31 March 2021.
For both cases you have until 14 April 2021 to submit a HomeBuilder application. Construction must begin within six months of signing the contract.
The HomeBuilder grant will provide a cash grant to Australian citizens (not residents) who meet the following criteria:
While HomeBuilder is a federal scheme, it is administered through state and territory governments. You need to visit the particular revenue office for your state or territory and apply for HomeBuilder there.
When applying you will need provide a signed contract with a licensed builder, personal details and information about the property.
HomeBuilder is a generous cash grant, but you have to look very closely at your income, your property's value and your construction or renovation plans to see if it can actually help you.
If you were planning on building a home within the value limits ($750,000), then HomeBuilder is definitely a win for you. As long as the timing works out.
The eligibility criteria for renovations are quite narrow, and won't cover a lot of people, especially those doing small renovations ($150,000 as a minimum effectively rules out any small renovations, such as retiling, window replacement or new carpet).
A lot of homeowners looking to make small improvements to their home won't qualify.
Understandably, industry groups have been quick to praise the scheme.
"The HomeBuilder incentive is the largest direct contribution to owner-occupier housing construction that an Australian government has ever made," said HIA Managing Director Graham Wolfe. "This incentive will help to address the projected decline in housing activity over the next 12 months."
"The federal government's HomeBuilder scheme will be a welcome shot-in-the-arm for the construction section over the next six months," said Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos.
"The restricted timeframe of the scheme as well as the requirement for projects to begin within three months of the contract date will also help to prevent profiteering from unscrupulous operators."
HomeBuilder is available for first home buyers and existing homeowners, but eligibility is quite restricted. However, there are several support policies targeted at first home buyers that are worth looking into.
You may be eligible for some or all of the following:
At Finder, we've got guides on home loans and finance for first home buyers, builders and people looking to fund their renovations. The following guides may be helpful to you whether you qualify for HomeBuilder or not:
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