HomeBuilder Scheme - Facts and Eligibility

June 4, 2020

PM announces $688 million HomeBuilder scheme for Australians looking to build or renovate. HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.

The scheme will give $25,000 grants to eligible homeowners, recipients will though need to spend at least $150,000 of their own money. The Government hopes it will ease a predicted downturn in construction which affects builders and trades by encouraging the commencement of new home builds and renovations.

To be eligible for the HomeBuilder scheme, you 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 tax return or later; or
$200,000 per annum for a couple based on both 2018-19 tax returns or later;

For the $25,000 Grant, you must have entered into a contract from 4 June 2020 up to 31 December 2020 (inclusive) 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; or
purchase an off-the-plan/new home as a principal place of residence where the contract price does not exceed $750,000 and construction had not commenced prior to 4 June 2020.

For the $15,000 Grant, you must have entered into a contract from 1 January 2021 up to 31 March 2021 (inclusive) to either:

build a new home as a principal place of residence, where the property value does not exceed $950,000 if the dewlling is in New South Wales; $850,000 if the dwelling is in Victoria; or $750,000 in all other States; 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; or
purchase an off-the-plan/new home as a principal place of residence where construction had not commenced prior to 4 June 2020 and the contract price does not exceed; $950,000 if the dewlling is in New South Wales; $850,000 if the dwelling is in Victoria; or $750,000 in all other States.

Owner-builders and those seeking to build a new home which will be used as an investment property, or renovate an existing home which is an investment property, will not be eligible for HomeBuilder.

The registered or licensed builder (depending on the state or territory) must demonstrate that the contract price for the new build or substantial renovation is no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser.

Renovation facts:

Renovation works must be to improve the accessibility, safety and liveability of the dwelling. It cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).

Information on when and how you will be able to apply will become available through the relevant State or Territory revenue office.

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