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Home Builder Scheme

On 4 June 2020, the Government revealed their latest grant to move Australian’s into their new homes sooner.

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    Summary

    As of June 4, the Government revealed their latest grant, the HomeBuilder Scheme. The HomeBuilder Scheme will see $25,000 provided to new builds or renovations contracted between 04 June 2020 until the end of the year. Of course, with this grant comes a list of specific eligibility criteria which we have outlined on this page.

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    Eligibility Criteria

    To access HomeBuilder, you will need to be an owner-occupier and meet the following eligibility criteria:

    • Be an Australian citizen aged 18 years or older and be an individual, not a company or trust.
    • Be on an income of less than $200,000 for couples, and $125,000 for singles.
    • Be spending between $150,000 and $750,000 on a renovation for a home that has been previously valued at less than $1.5 million.
    • Be building a new home worth less than $750,000 (this includes land value). 
    • Enlist a licenced builder to complete the construction
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    How can I access HomeBuilder

    You should contact your relevant State or Territory authority on when and how to apply for HomeBuilder. You will be able to apply for HomeBuilder when the Government of the State or Territory that you live in, or plan to live in, signs the National Partnership Agreement with the Commonwealth Government

    Click here for Victoria

    Click here for Queensland

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    Process and timing

    Information on when and how you will be able to access HomeBuilder will become available through your relevant State or Territory revenue office. HomeBuilder will be implemented via a National Partnership Agreement, signed by the Commonwealth and State and Territory governments. When the States and Territories begin accepting HomeBuilder applications, they will backdate acceptance of these applications to 4 June 2020 so you don’t need to worry about missing out!

     

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    What to do if you already own land

    You are still eligible 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.
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What are the price & income caps?

  • HomeBuilder is subject to two prices: a contract price cap (for new builds and renovations) and an income cap for applicants.

    Contract price cap

    A national price cap of $750,000 will apply for new home builds. This means that the value of new builds (house and land), house and land packages, and off-the-plan purchases must not exceed $750,000 to be eligible for HomeBuilder.

    For renovations, a building contract price range of between $150,000 and $750,000 will apply and the total value of your property before renovation must not exceed $1.5 million.

  • 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.

  • Top Tip
    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
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    Do you need to be a First Home Buyer?

    No, provided you meet the eligibility criteria, you can apply for a HomeBuilder Scheme grant. Please keep in mind that HomeBuilder is not available for investment properties or to owner-builders.

    However, for eligible First Home Buyers, the HomeBuilders Grant can be combined with the Victorian Government’s First Home Owner Grant amounting to a huge $35,000 incentive in metro Melbourne or a massive $45,000 incentive in regional areas to buy before the end of the year! If you’re located in Queensland, and are an eligible First Home Buyer, the HomeBuilders Grant can be combined with the Queensland First Home Owner Grant of $15,000 amounting to $40,000!

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    Are all dwelling types applicable?

    All dwellings are included under the scheme but remember the grant will not apply to owner-builders or those who are planning to build a new home or renovate an existing one as an investment property.

    Just a reminder that while Porter Davis is perfect for your knockdown rebuild or new home projects, we do not undertake renovations.

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    Who can carry out the work?

    All works will need to be conducted by a registered or licensed builder. The scheme will also require you to show you have no special relationship with your contractor (such as being related).

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