If you haven’t already heard the great news Australian Prime Minister Scott Morrison announced the full details of the HomeBuilder scheme this morning. Australians will be offered $25,000 grants to build a new home or start a major renovation as a lifeline to the home construction industry.
Mr Morrison said the grants would “support those Australians whose dream it was to build their home or to do that big renovation. With the extra $25,000, along with record low interest rates means now’s the time to do it”.
Excitingly, the tax-free grant will apply to all owner-occupiers – not just first home buyers. To extend the grant to more people, all dwelling types (house, apartment, house and land package, off the plan, etc) will qualify under the HomeBuilder scheme.
HomeBuilder complements existing state and territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme. The grant will be offered for contracts entered into between 4 June 2020 and 31 December 2020. Construction must be contracted to begin within three months of the contract date to be eligible. Aimed at middle income earners, the scheme will include an income test to qualify for the grant.
Exclusions extend to owner-builders who are planning to build a new home or renovate an existing home to use as an investment property. Any additions to the property that are not connected to the home (swimming pools, tennis courts, outdoor spas and saunas, sheds or garages) will not be included. For instance, a substantial kitchen or bathroom renovation that provides work for plumbers and carpenters may fit the bill, a more modest paint job or flat pack kitchen may not qualify for the scheme.