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.
WHAT IS HOMEBUILDER?
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 (house and land) 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 (house and land) does not exceed $1.5 million;
· construction must commence within three months of the contract date.
Owner-builders and those seeking to build a new home which will be used as an investment property, or renovate an existing home which is an investment property, will not be eligible for HomeBuilder.
The registered or licensed builder (depending on the state or territory) must demonstrate that the contract price for the new build or substantial renovation is no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser.
Yes, if you meet the following criteria:
· If you own a property (house and land), and knock the house down to rebuild – this will be counted as a substantial renovation, and therefore subject to the renovation price range of $150,000 to $750,000 provided the total value (house and land) of the property does not exceed $1.5 million pre- renovation;
· If you own vacant land before 4 June 2020, and then build, the total value of the land and new build cannot exceed $750,000; or
· If you buy the land after announcement, and then build, the total value of the land and build cannot exceed $750,000.
Contract price cap
Income price cap
Eligible applicants must meet one of the following two income caps:
· $125,000 per annum for an individual applicant based on the 2018-19 tax return or later; or
· $200,000 per annum for a couple based on their combined 2018-19 tax return or later.
The income price cap, as well as the eligibility criteria for the applicant, were chosen to reduce complexity as they align with the Commonwealth Government’s First Home Loan Deposit Scheme.
The State or Territory revenue office will require certain documents to process your application. It is expected that you will need to provide the following at a minimum:
· proof of identity;
· a copy of the contract, dated and signed by you and the nominated registered or licenced builder;
· a copy of the builder’s registration or licence (depending on the state you live in);
· a copy of your 2018-19 tax return (or later) to demonstrate your eligibility against the income cap; and
· documents such as council approvals, building contracts or occupation certificates and evidence of land value.
More information on the documentation you will need to provide will become available through the relevant State or Territory authority.