How To: Take Advantage of the HomeBuilder Grant
Everything you need to know about the new home builders grant
In a bid to assist the construction industry the Federal Government announced a new HomeBuilder grant that gives eligible owner-occupiers motivation and support for buying or renovating their homes.
HomeBuilder will provide $25k for new builds or substantially renovated homes if the contract is signed between June 4 and December 31 this year. For first-time builders, that could mean $25k in addition to the existing $10k first home builders grant.
The estimated $688 million stimulus package is available to new home builds, off-the-plan properties, knockdown rebuilds, and any new build under $750k tax free.
Who is eligible for the HomeBuilder grant?
You might have heard some conflicting information about the HomeBuilder grant. Unlike the First Home Owners Grant, HomeBuilder is open to people who are already in the property market. However, you will not be eligible if you plan to build an investment property: you must be an owner-occupier.
Here’s what else you need to know:
- Contract must be signed between June 4 and December 31 2020
- Construction must start within 3 months of signing the building contract
(varies between states refer to state website for more details)
In theory, this means you still have a few months to save for a deposit and find your dream home design. But remember, this grant won’t be available forever!
- New Builds/Off the plan purchases: Commencement of construction is when excavation and site preparation works begins.
- Substantial renovations: Commencement of construction is when works under the renovation contract starts.
An extension of up to a further 3 months may be allowed if there are delays that are unforeseen and outside the control of the parties to the contract. These may include:
- delays in obtaining council approvals;
- difficulties in obtaining construction materials and/or sub-contractors;
- inclement weather, where the disruption is substantial;
- health problems relating to, or the death of, a person critical to the commencement of the project;
- prolonged industrial disputes;
- natural disasters.
- Individuals earning less than $125k
- Couples earning less than $200k combined
The income caps were chosen to simplify the selection criteria. Provided you can prove (with last year’s tax return, or a recent income statement) that your income falls under the cap, you could be on your way to a new home.
Home and renovation value
- Total house and land value must be under $750k for new builds
- Price cap applies nationally on all new builds
- Renovation value must be between $150k and $750k
- Property value (home and land) cannot exceed $1.5 million before renovation
- Existing blocks without a home are eligible
So even if you’ve recently bought a block but yet to sign a construction contract, or you’re looking to knock down your old home and build something new and better, the HomeBuilder grant could still apply.
Who can apply?
- Some of the dwelling types that are eligible include single or double-storey homes, house and land packages, off-the-plan, knockdown rebuilds, extensions or renovations to improve your existing home.
- You must be 18 or older and an Australian citizen
- You will live in the house once it’s built
- First home buyers or existing owners
Investment properties and companies building homes won’t be eligible for HomeBuilder. However, you don’t need to be a first home builder to access the grant – although if you are, you could receive $25k on top of the $10k first home builders grant.
What you need to apply
- Proof of identity
- Copy of the building contract, signed and dated
- Your FY18/19 or FY19/20 tax return
- Evidence of land value; council approvals, building contracts etc.
You can read more from the Treasury department here:
Where you can apply
HomeBuilder applications can be lodged via an online portal on the Revenue NSW website, which will be available shortly.
To help you prepare for lodging your application online there is an application form and lodgement guide available.
Take advantage of first home builders grants with Kurmond Complete
Kurmond Complete is a Sydney based quality home builder dedicated to delivering beautiful, affordable homes. We are the perfect partner for building your first home, knocking down to rebuild, or upgrading to a bigger family home for your growing family.
Get in touch to find out how we make it easy to access up to $35k in grants, for the best start on your new home.