Exciting news for people who wanted to build a new home or complete a renovation. The catch is that you needed to enter a building contract by the end of December 2020. Some people had been putting off a new build or a renovation and the grant applications were closed April 2021, but the government extended construction starts from six to eighteen months for existing applicants due to unforeseen delays with construction supplies due to the pandemic and natural disasters. The extension was applicable for people who had signed contracts between June 4, 2020, and March 31, 2021.
Ward Builders advises that The Home Builder Grant had allowed first time home buyers an opportunity to enter the property market much sooner than they would have been able to. It also offered some people the chance to get certain renovations completed. This stimulus boost by the Australian Government provided bushfire victims the chance to rebuild their homes.
There were price and income caps on the Home Builder Grant, this $25,000.00 tax-free grant which eligible owner-occupiers and first-time home buyers could access. An extension was made to the grant so that contracts that were signed between January 1, 2021, and March 31, 2021, were eligible to obtain a $15,000.00 grant.
The Home Builder Grant was a federal scheme which was directed at helping to boost the Australian residential construction market to keep building homes after the Coronavirus pandemic which all but shut down economies around the world.
Extended Home Builder applications were accepted under certain criteria:
- Purchase price threshold for new builds in NSW was $950,000.00 and in Victoria, $850,000.00 with a continuing existing price cap of $750,000.00 for all other Territories and States.
- Home Builder grant was $15,000.00 for new construction or substantial renovations which occurred between January 1 and March 31, 2021.
- Contracts signed after November 29, 2020, needed a builder/developer to hold a valid license.
- Contracts signed before November 29, 202 must have held a valid license by June 4, 2020
Summary details of Homebuilder grant
The homebuilder needed to build a property for equal to or less than $750,000.00. The maximum property value for a renovation was 1.5 million.
There was an income cap: for individuals, their income was $125,000.00 or less for the financial year ending 2019. For couples, their income needed to be less than $200,000.00 for 2019. Both applicants (in a couple situation) needed to be Australian citizens to qualify for the grant, temporary or permanent residents were not eligible.
The Home Builder grant could not be used as a deposit for a purchase on a property, but it was able to be used for completion funds in certain states. The contract for building the property needed to be signed between June 4, 2020, and March 31, 2021. The construction or the renovation project needed to be commenced within three months of the building contract being signed and the grant was provided to the recipient once the construction or renovation was commenced.
Investors and home builders who were also owners were not eligible to apply for the Home Builder grant. The Home Builder grant was available for both first time home buyers and existing homeowners which made it a good option for many to apply for, providing a stimulus to the building economy during the pandemic.
The property to be renovated could not be valued at more than $1.5 million. Applicants had to be at least 18 years of age or older. Property investors and owner builders were not eligible for the grant. The grant was only applicable to the principle home where the applicant resided, so no investment properties were allowed.
Applicants could spend between $150,000.00 and $750,000.00 on their home but it had to have a value of less than $1.5 million and renovations such as a shed, tennis court or swimming pool were not eligible. The scheme had measures in place to prevent price increases and to provide you with the best deal possible.
How did Eligible People Apply for the Home Builder Grant?
Applications were dealt with via the state or the territory revenue office where a person resided. Some States allowed for application view their revenue website. Applicants had to provide proof of their identify, a copy of their contract with their licensed builder, tax returns and property documents including building contracts and any approvals by council.