The Federal government has announced an economic stimulus scheme through Home Builder, a time limited grants program. Under this scheme, eligible buyers and homeowners will receive a grant of $25,000 for renovations and new constructions. This grant from the Federal Government aims to give a boost to the construction industry, which is hit badly due to coronavirus.
Where the money can be spent?
Home builders’ grant is available to individuals or couples constructing a new home having a value of up to $750,000. It is also available to homeowners undertaking renovations with the value of these renovations lying between $150,000 and $750,000. The value of the property before renovations should not exceed $1.5 Million. In case of renovations, they should be supervised by a licensed builder. The money can also be used for adding a storey to the existing structure.
Who is eligible for Homebuilder Grant?
To be eligible for this grant:
- You must be either prospective buyer or the current owner of a home. This grant is not for investors. It means the applicant should be an individual and not a company.
- You must be an Australian citizen.
- You must be over the age of 18.
- Annual income should be less than $125,000 for singles and less than $200,000 for couples.
- This grant is time limited in the sense that it is only applicable to purchases or renovations taking place between 4 June and 31 December 2020.
- Even if the contract was signed in between the stipulated dates, renovation or purchase should take place within 3 months of singing it.
How Homebuilder Grant took shape?
To make this grant available all over Australia to help boost construction industry, state and territory governments signed a National Partnership Agreement with the Commonwealth. Implementation of the program is more feasible with this agreement as grants at state and local levels can be distributed through existing mechanisms. It is expected that the total impact of Home builder grant on state exchequer will be around $680 million. However, the final cost may be different depending upon the response this grant gets from the people. It is expected that nearly 27,000 applicants will benefit from Homebuilder Grant.
All states and territories of Australia are participants in this economic stimulus announced by the Commonwealth. Irrespective of where you live in Australia, you are eligible for this grant if you want to purchase a home or renovate the existing one.
Which structures are ineligible under Homebuilder Grant?
The main condition of eligibility under Home builder Grant is that the structure in question should be the primary residence of the applicant. It means that this grant cannot be used for construction of additions such as tennis courts, swimming pools, outdoor kitchens, pools, etc. It cannot be used for detached structures like garages and sheds as well.
According to an estimate by Australian Housing Association, approximately 14,000 renovations costing nearly $150,000 are undertaken by homeowners across the country every year. In such a scenario, this economic stimulus package in the form of Home builder grant should serve as a major booster for the construction industry.
For more information on this grant please speak to one of our advisers at the number mentioned below.