Given the impact of Bushfire and COVID-19, Australia has entered into an economic recession first time in the last 30 years. Last a couple of weeks, we have witnessed the Federal Government announced that they have been working with States and Territories to offer a $25,000 HomeBuilder Grant between 4 June 2020 and 31 December 2020 for eligible owner occupiers and buyers including first home buyers.

Eligibility:

• Natural person (not a company and trust)
• Aged 18 years or older
• An Australian Citizen (does not mention PR or New Zealand Citizen)
• Income cap:
  • For Individuals, your earning should be $125,000 or less based on 2018-19 tax return or later
  • For couples, your combined earnings should be $200,000 or less based on 2018-19 tax return or later
• can be either:
  • A new home worth less than $750,000 or
  • An existing home valued up to $1.5m, and the renovation contract should be between $150,000 and $750,000
• The construction and renovation must be executed within three months of the contract date.

Dwelling types:

House, apartments, house and land package, off-the-plan, can be existing property renovation and new property. The scheme will not apply to owner builders or those who are planning to build a new home or renovate an existing home as an investment property.  

Eligibility for Renovation

Renovation fee is between $150,000 and $750,000. The existing property needs worth less than $1.5 million. The construction should be carried out by licensed contractors at arms-length price within three months after signing of the contract. The HomeBuilder Grants must be used for improving your accessibility, liveability, and safety, but not used for add-ons like tennis courts, swimming pool and detached sheds etc. Also, the terms of the contract should be reasonable and in line with the market requirements to prevent any fraud between builders and property owners from swindling grants.

Am I still eligible if I own a land?

• If you own land with an existing dwelling on it and plan to demolish and rebuild your dwelling, this will be considered as substantial renovation as long as the upgraded work’s value is between $150,000 and $750,000, and the value of your existing dwelling (including land value) before the demolish does not exceed $1.5 million.
• If you acquired a vacant land prior to 4 June 2020, you can build a new dwelling on it as long as the total cost of the dwelling plus the land value before construction is less than $750,000.

Can I apply now?

No. It can only apply after your State or Territory enters into a contact with Federal Government and open the channel for application. You will be notified by each State or Territory government in regard to the updates of application. 

Required documents:

Required documents may vary from different State or Territory for your application. However, at least the following documents are required:

• Proof of identification
• Contract with date and signature of you and your licensed builder
• Copy of your builder’s registration or license (depending on your State or Territory)
• Copy of your 2018-19 tax return to demonstrate your income meets income cap
• Other documents including council approvals, building contracts and evidence of land value etc

More detailed documents require further notification from States or Territory government

If I have received First Home Owner Grant, am I still eligible for this HomeBuilder Grant?

Yes, you are. The Homebuilder Grant does not conflict with the First Home Owner Grant, Stamp Duty Concessions as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

Do we have to pay tax on that?

No. This is a tax-free payment to you.

Call us on 0292213345 or email on info@pittmartingroup.com.au for further details.

Disclaimer: This article is not providing a formal advice and may not suit to all scenarios. Please make an appointment with us to discuss.