Support to build or renovate your home
If you’re looking to build a new home, complete a knock-down rebuild or to substantially renovate your existing home, you may be eligible to apply for a Government grant of up to $25,000 to put towards construction costs.
The HomeBuilder program will complement existing support measures, such as state-based first home-owner grants and stamp duty concessions. It is also accessible in conjunction with the First Home Owner Super Saver Scheme and First Home Loan Deposit Scheme. The good news is, you don’t need to be a first home owner to apply for the grant, so if you’re not eligible to participate in any existing schemes, this program might provide you with support.
To be eligible for a grant, the following eligibility criteria must be met:
|Age and citizenship||You must be an Australian citizenYou need to be aged 18 years or older|
|Individual income caps||Your income must be below one of the two caps below: $125,000 per annum for an individual applicant based on your latest tax return (either 2018/19 or 2019/20), or$200,000 per annum for a couple based on both individual’s latest tax returns (either 2018/19 or 2019/20)|
|Date of contract and construction||The building contract must be entered into between 4 June 2020 and 31 December 2020Construction must commence within three months of the contract date|
|Grant to build a new home – requirements||The new home must be occupied as a principal place of residenceThe completed value of the new build (land and property) cannot exceed $750,000This criteria applies where vacant land is purchased either before or after 4 June 2020, with a contract to build entered into after this date|
|Grant for substantial renovations – requirements||Substantial renovations to an existing principal place of residence must have a commercial contract price between $150,000 and $750,000Renovations include where a property (house and land) is already owned and a knock down rebuild is completed (where the new build cost is capped at $750,000)Pre-renovation value of the property must not exceed $1.5 millionRenovations must improve accessibility, safety or liveability and cannot include additions such as swimming pools, spas, sheds or stand-alone garages|
|Use of property||The home must be used as your primary place of residenceThe new or renovated dwelling cannot be intended for use as an investment property|
|Companies, trusts and owner- builders||Not available to companies or trusts, including SMSFsNot available to owner-builders|
|Evidence required||You’ll be asked to provide: proof of identitya copy of a signed and dated contracta copy of your builder’s registration or licencea copy of your latest tax return (either 2018/19 or 2019/20), andother documents such as Council approval, contracts, occupation certificates and valuations|
|Other||All contracts and agreements must be entered into at arm’s length, which means conditions such as the price and scope of works must be commercial, rather than favourable because of your relationship with another party involvedAll building and renovation work must be carried out by a registered or licenced contractor and named as a builder on the building licence or permitUnlike some other Commonwealth and State-based schemes, there is no requirement that you need to be a first home buyer|
To find out more about this program and whether you might be eligible, you should speak to your financial planner, or access further information from the below sources:
- Treasury Fact Sheet: HomeBuilder
- Treasury Fact Sheet: HomeBuilder – FAQs
- The state revenue office in your location – see table below.
This document has been prepared by GWM Adviser Services Limited (ABN 96 002 071 749, AFSL 230692) (GWMAS), part
of the National Australia Bank group of companies. Any advice provided is of a general nature only. It does not take into account your objectives, financial situation or needs. Please seek personal advice before making a decision about a financial product.
Information in this document is current as at 4 June 2020. While care has been taken in its preparation, no liability is accepted by GWMAS or its related entities, agents or employees for any loss arising from reliance on this document. Any opinions expressed constitute our views as at 4 June 2020. Case studies are for illustration purposes only. Any tax information provided is a guide only. It is not a substitute for specialised tax advice.
GWM Adviser Services Limited (ABN 96 002 071 749, AFSL 230692) (‘GWMAS’). A member of the National Australia Bank Limited (‘NAB’) group of companies. NAB does not guarantee or otherwise accept any liability in respect of GWMAS or these services.