The Australian Government recently made a big announcement that’s set to impact new and existing homeowners… They’ll be offering $25,000 cash grants to eligible Australians for new home builds and “substantial” renovations. It’s hoped the stimulus package, called HomeBuilder, will provide a much-needed boost to the economy following the impacts of the Coronavirus pandemic.
What does it mean?
For those already planning a new build or renovation project, HomeBuilder is great news as it will allow access to a $25,000 tax-free grant for the construction project. Furthermore, HomeBuilder can be used in conjunction with other building grants, including the First Home Owners Grant meaning up to $45,000 can be provided to eligible Victorians.
Am I eligible?
Naturally, there are a number of eligibility criteria you’ll need to meet to access HomeBuilder. Firstly, your new home build must be valued below $750,000 – and this includes your land. For a renovation project, works will need to be valued between $150,000 and $750,000 and the property cannot be valued greater than $1.5 million, after all works have been carried out.
In addition to these requirements, you’ll need to sign a building contract before December 31 and building works must commence within 3 months of your contract date. Those looking to build or renovate an investment property are unfortunately ineligible for the grant, as are owner-builders. You’ll need to engage a licensed building contractor to complete all works and this cannot be a relative (even if they are a licensed builder).
Once you’ve determined whether your project is eligible for HomeBuilder, you’ll need to ensure you, personally, meet the criteria. This includes being an Australian citizen (permanent residents and NZ citizens are ineligible), aged over 18 years old and meeting specific income caps. For individuals, you’ll need to earn below $125,000 per annum, while couples must have a combined income below $200,000 – these figures will be based on your 2018/2019 tax return.
How can I access an extra $20,000?
Those who are looking to build their first home will be pleased to hear that HomeBuilder can be used in conjunction with the First Home Owners Grant, meaning they may be eligible for up to $45,000 for their new home. Those in regional areas of Victoria, like the north east, are eligible for $20,000 under the First Home Owners Grant, while those in urban areas are eligible for $10,000.
While this grant is only available on new homes up to $750,000 this figure fits with HomeBuilder requirements and makes it the perfect opportunity to build new in 2020 or early 2021. Find out more about the First Home Owner Grant here.
Those looking to take advantage of HomeBuilder and the First Home Owners Grant together will need to act fast as the design and planning process can take many months. If you’re looking to speed up the process, Crown Building & Constructions offer a range of 200+ pre-designed house plans that can be customised to suit any lifestyle and budget. They’re perfect for those looking to take advantage of these grants to build a new home in North East Victoria.
Explore our range of house plans on our website or get in touch with Matt to chat about your options on 0437 568 933.