The Homebuilder Government Initiative

The Homebuilder Government Initiative was introduced by the Australian Federal Government to assist the growth of the residential construction market, by encouraging the commencement of new home builds and renovations this year. The program offers owner-occupiers a $25,000 grant that can be used to build either a new home or substantially renovate an existing home.

What is the HomeBuilder Government Initiative?

The new HomeBuilder Initiative is a time-limited, tax free scheme to support positive growth of the residential construction market during the Coronavirus (COVID-19) pandemic. 

How will this help first home buyers?

The HomeBuilder Initiative 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.

Is this available to Australians that are not first home buyers?

Yes, as long as the home being renovated is the applicant’s principal place of residence. Those looking to use the program for an investment property will not be eligible. 

Will this be available to every owner-occupier in Australia?

The HomeBuilder Government Initiative will be available for building contracts that are signed between 4 June 2020 and 31 December 2020, where construction or renovation commences within three months of the contract date. 

Is there a limit to how many people can receive HomeBuilder?

The HomeBuilder program is an uncapped, time-limited Initiative. 

What types of dwellings are eligible under the HomeBuilder? 

All types of dwellings, including but not limited to: houses, apartments, home and land packages, and off-the-plan constructions, are eligible under the HomeBuilder scheme. However, it must be in accordance with the requirement that the owner-occupier must contract to build a new dwelling or substantially renovate their existing dwelling. 

Is the HomeBuilder scheme taxed?

No, the HomeBuilder scheme will not be taxed.

Can the HomeBuilder scheme be used with other Government Initiatives?

Yes, if you are a first home buyer, the following Government Initiatives work in conjunction with the HomeBuilder Government Initiative:

• Current State and Territory First Home Owner Grants;
• First Home Loan Deposit Scheme;
• First Home Super Saver Scheme; 
• Stamp Duty Concessions; and
• Other Grant Schemes. 

How do I know if I am eligible for the Home Builder?

To be eligible for the HomeBuilder Government Initiative, owner-occupiers must meet the following eligibility criteria:

• You are a not applying as a company or as a trust;
• You are 18 years or older;
• You are an Australian citizen;
• You comply by one of the following income caps: Taxable income of $125,000 per annum for an individual applicant; or  Taxable income of $200,000 per annum for a couple;
• You entered into a building contract between 4 June 2020 and 31 December 2020 to either: Build a brand new home which will be your principal place of residence, where the property value of the home and land package 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, where the existing property value does not exceed $1.5 million; and
• The construction must commence within three months of the contract date. 

For more information about the HomeBuilder Government Initiative or to begin your journey of homeownership, contact U1st Realty today