Valued at $25,000, the new HomeBuilder Grant can make a big difference to your building or renovation budget, so let’s find out a little bit more about it.
The Coronavirus crisis has impacted many industries in many ways, and the construction industry has certainly not been immune. As a way of helping this industry to bounce back, the Australian Government has announced a new HomeBuilder Grant to encourage owner-occupiers to renovate or build new homes, which in turn will help keep builders and tradespeople working. To access the Grant, you need to spend a minimum of $150,000, but there are a few other important facts to know as well.
1. You can combine it with the First Home Owner Grant
If you thought a bonus $25,000 sounded good, imagine what difference $40,000 could make.
In addition to the newly released HomeBuilder Grant, the government is still offering the $15,000 First Home Owner Grant, and the best news is these Grants are not mutually exclusive. If you meet the eligibility criteria for both, you’ll receive a whopping $40,000 towards your new home.
Of course, there are strict criteria that must be met for both of these Grants so make sure you’re familiar with the fineprint before you start planning your dream home.
2. You can use it for new builds or renovations
Whether you’ve purchased an off-the-plan house and land package, you’re using your own architect/builder or just making improvements to your current home, you could be eligible for the package.
It’s relatively straight forward when it comes to new builds and off-the-plan houses, but for renovations, there are quite strict rules about what the money can be used for.
If you were hoping to use the money to finally put in that pool or tennis court, or build a granny flat for your teenage kids out the back, sadly you’ll have to keep dreaming. This Grant is only eligible for structures connected to the main building, which means things like stand-alone garages, sheds, patios and outdoor spas don’t make the cut either. It also can’t be used for things that are primarily cosmetic in nature including landscaping, painting and recarpeting – but spending $150k on that would probably be a stretch anyway.
3. The building work must be undertaken by a licensed professional
Unfortunately this Grant isn’t suitable for the DIY’ers among us. The work must be completed by a person who currently holds a relevant license as required under the Building Work Contractors Act 1995.
Importantly, this work also can’t be undertaken by anyone you’re related to. If you were hoping to use your builder uncle or your architect cousin, sadly this Grant also won’t apply to you.
To give you the exact definition the work cannot be undertaken by any related person, which includes your spouse, child, grandchild, sibling, parent, grandparent and collateral relatives (cousins, nieces, nephews, aunts, uncles) as well as any company, trust or partnership in which you, or any of your relatives are a shareholder, director, trustee, beneficiary or partner.
Of course there are many more elements to the eligibility criteria, and some of these include:
- You have to live there for at least 6 months after completion to get the Grant
- You have to earn less than $125,000 as a single or $200,000 as a couple
- You won’t get the cash up front – when you receive it depends on the situation, but you will need to be able to prove your spending before getting the money
- You need to sign the contract before the end of this year, so if you are eligible and thinking about it, you need to get cracking.
For more advice on the nitty gritty details of this new initiative we encourage you to check out the below fact sheets, and you can of course contact us here at Eastern Conveyancing to discuss how this applies to your personal situation on 08 7226 8033.