What is the HomeBuilder?

HomeBuilder is a time-limited grant program to help the residential construction market to bounce back from the Coronavirus crisis.

 

Background

The Australian Government has announced the HomeBuilder initiative, a time-limited, tax-free grant program to help the residential construction market to get through the coronavirus (COVID-19) pandemic.

HomeBuilder will complement existing State and Territory first home owner grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

HomeBuilder is being implemented through a National Partnership Agreement. As of 2 July 2020, all States and Territories have signed up to the HomeBuilder National Partnership Agreement.

 

Funding

HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date.

Payment of the HomeBuilder Grant depends on whether your application relates to a new build, substantial renovation or off-the plan / new home purchase:

  • New builds – grants will be paid after construction has commenced and the first progress payment has been made to your builder.
  • Substantial renovations – grants will be paid after construction has commenced and at least $150,000 of the contract price has been paid in respect of the renovation.
  • For off-the-plan / new home purchases – grants will be paid after the applicant(s) name is registered on title.

In Tasmania, the timing of the grant payment may be different in certain circumstances and you should refer to the State Revenue Office of Tasmania website for further information.

 

Eligibility

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 taxable income or later; or
    • $200,000 per annum for a couple based on both 2018-19 taxable income 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 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 (pre-renovation);
  • construction must commence on or after 4 June and within three months of the contract date.

This measure is expected to have a cost of $680 million. Final program costs will depend on actual take-up of the grant and may differ from these estimates as HomeBuilder is an uncapped and demand-driven program.

 

Timing

HomeBuilder will be implemented via a National Partnership Agreement with State and Territory governments. This approach will utilise existing State and Territory mechanisms to distribute the HomeBuilder payments.

When the States and Territories begin accepting HomeBuilder applications, they will backdate acceptance of these applications to 4 June 2020.

Information on when and how you will be able to access HomeBuilder will become available through the relevant State or Territory.

 

More Information