Accounting and Tax

HomeBuilder scheme great news for new home buyers and owner occupiers

10 June 2020
2 min read

10 June 2020

Last week, the government announced the HomeBuilder scheme, which provides a grant of up to $25,000 to eligible Australian owner-occupiers who are looking to build a new home or “substantially renovate” an existing one.

The HomeBuilder grant, which can also be used to purchase off-the-plan properties, will be available to Australians who are building a new home valued up to $750,000. It can also be used to start a major renovation valued between $150,000 to $750,000 with renovations capped so that the total property value does not exceed $1,500,000.

The grant cannot be used for investment properties and excludes the construction of any structures not attached to the property such as sheds, pools and granny flats.

The HomeBuilder scheme 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.

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 and 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 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 does not exceed $1.5 million.

  • Construction must commence within three months of the contract date.

This is great news for new home buyers and will make a significant difference to the costs and funding of your home. Additionally, developer grants are available that will further assist in your purchasing cost and funds to complete. Contact your Findex Lending Adviser for more details, or to start your loan proposal.