HomeBuilder Program stimulus package
From today the 4 June 2020 until the 31st of December 2020 all eligible owner-occupiers (not just first home buyers) will be provided with a grant of $25,000 to build their new home or substantially renovate their existing home. If you’re an eligible first home owner this is in addition to your first home owner grant payment.
The Morrison Government’s latest announcement supports jobs in the residential construction sector. It’s also particularly exciting for existing home owners who are often exempt from government home building and home buying grants. Supporting eligible existing home owners to build a new home or substantially renovate their existing home is a game changer not only for the industry but also for singles, couples and families. As for eligible first home buyers, what an extraordinary kick along it is for them with this grant being a payment that’s made to them in addition to their first home owners grant.
The grants have been offered in anticipation of what the industry feared would be a devastating blow to the construction activity in the second half of 2020 due to the coronavirus pandemic.
The eligibility criteria includes caps on income which is $125,000 for singles and $200,000 for couples which is based on their latest assessable income. There’s also a nation wide dwelling price cap of $750,000 which will apply to new home builds. The national renovation price range will be from $150,000 up to $750,000 and will apply to an existing home with a current value no more than $1.5 million.
The contract with your builder must be signed between 4 June 2020 and 31 December 2020 and construction must commence within three months of the contract date. Clearly this is designed to keep the industry alive right now in the immediate future.
This latest stimulus announcement from the Australian Government comes with relief to some 140,000 employees who are employed in direct jobs and another 1,000,000 employees who work in related jobs in the residential construction industry. Jobs in the residential construction industry include sole-trader builders, contractors, property developers, construction material suppliers and manufacturers, engineers, designers and architects to name a few.
The latest announcement comes in addition to existing state and territory first home owner grants, stamp duty concessions and other grant schemes that may exist including the First Home Loan Deposit Scheme and First Home Owner Super Saver Scheme.
For more information please read the HomeBuilder fact sheet or the Frequently asked questions sheet.
Information on when and how you will be able to access HomeBuilder will become available through your state or territory revenue office.
VIC: https://www.sro.vic.gov.au/
NSW: https://www.revenue.nsw.gov.au/
ACT: https://www.revenue.act.gov.au
SA: http://www.revenuesa.sa.gov.au/
Disclaimer
This information is of the nature of general comment only, and does not represent professional advice nor should it be substituted for professional advice. Whilst attempts have been made to ensure the accuracy of the information, we don't guarantee it's accuracy. Any information we provide is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. You should always obtain professional advice before making any decision to purchase property of any kind. We recommend you seek professional financial advice prior to entering into a contract of any kind. Build In Oz disclaims all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this course. Please refer to our privacy and disclosure statement for further information.
