HomeBuilder provides eligible owner-occupiers (including
first home buyers) with a grant of $25,000 to build a new home or substantially
renovate an existing home. HomeBuilder will assist the residential construction
market by encouraging the commencement of new home builds and renovations this
year.
HOMEBUILDER
Summary
HomeBuilder is a time-limited grant program to help the
residential construction market to bounce back from the Coronavirus crisis.
HomeBuilder will provide eligible owner-occupiers (including
first home buyers) with a grant of $25,000 to build a new home or substantially
renovate an existing home where the contract is signed between 4 June 2020 and
31 December 2020. Construction must commence within three months of the
contract date.
HomeBuilder will complement 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.
Eligibility
To access HomeBuilder, owner-occupiers must meet the
following eligibility criteria:
• you are a natural person (not a company or trust);
• you are aged 18 years or older;
• you are an Australian citizen;
• you meet one of the following two income caps:
- $125,000 per annum for an individual applicant
based on your 2018-19 tax return or later; or
- $200,000
per annum for a couple based on both 2018-19 tax returns or later;
• you enter into a building contract between 4 June 2020 and
31 December 2020 to either:
- build a new home as a principal place of
residence, where the property value does not exceed $750,000;
- or substantially renovate your existing home as
a principal place of residence, where the renovation contract is between
$150,000 and $750,000, and where the value of your existing property does not
exceed $1.5 million;
• construction must commence within three months of the
contract date.
Process and timing
HomeBuilder will be implemented via a National Partnership
Agreement, signed by the Commonwealth and State and Territory governments. This
approach will utilise existing state and territory mechanisms to distribute the
HomeBuilder payments.
When the States and Territories begin accepting HomeBuilder
applications, they will backdate acceptance of these applications to 4 June
2020.
Information on when and how you will be able to access
HomeBuilder will become available through the relevant State or Territory
revenue office.
Budget impact
This measure is expected to have a cost of $680 million.
Final program costs will depend on actual take-up of the grant and may differ
from these estimates as HomeBuilder is an uncapped and demand-driven program.
Other
Owner-builders and those seeking to build a new home or
renovate an existing home as an investment property are ineligible for
HomeBuilder.
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. The terms of the contract should be
commercially reasonable and the contract price should not be inflated compared
to the fair market price.
Renovations or building work must be undertaken by a
registered or licenced building service ‘contractor’ (depending on the state or
territory you live in) and named as a builder on the building licence or permit.
The renovation works must be to improve the accessibility, safety and
liveability of the dwelling. It cannot be for additions to the property such as
swimming pools, tennis courts, outdoor spas and saunas, sheds or garages
(unconnected to the property).
HomeBuilder will be non-taxable – consistent with existing state and territory First Home Owner Grant programs.
To access this fact sheet and for more information visit:
https://www.revenue.nsw.gov.au/news-media-releases/covid-19-tax-relief-measures/homebuilder-program
