HomeBuilder to provide all eligible owner-occupiers with a grant of $25,000 to build a new home or renovate an existing home

In a recent press release from the Prime Minister’s office, a major announcement across the RESIDENTIAL CONSTRUCTION SECTOR has been made. “From 4 June until 31 December 2020, HomeBuilder will provide all eligible owner-occupiers (not just first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. Construction must be contracted to commence within three months of the contract date.”

The Morrison Government is supporting jobs in the residential construction sector with the introduction of the new HomeBuilder program.

Here’s a lowdown on the HomeBuilder program announcement:

·       HomeBuilder applicants will be subject to eligibility criteria, including income caps of $125,000 for singles and $200,000 for couples based on their latest assessable income.

·       A national dwelling price cap of $750,000 will apply for new home builds.

·       A renovation price range of $150,000 up to $750,000 will apply to renovating an existing home with a current value of no more than $1.5 million.

·       The program is expected to provide around 27,000 grants at a total cost of around $680 million.

According to the media statement, “This increase in residential construction will help to fill the gap in construction activity expected in the second half of 2020 due to the coronavirus pandemic.

In doing so, HomeBuilder will help to support the 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector including businesses and sole-trader builders, contractors, property developers, construction materials manufacturers, engineers, designers and architects.

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.”

This year, the Government delivered the First Home Loan Deposit Scheme to help eligible first home buyers to purchase their first home with a deposit of as little as 5 per cent, allowing them to get into the market sooner.

The program will create even more opportunities for first home buyers to enter the property market, as well as support other eligible Australians to build a new home or renovate an existing home.

It  will be implemented via a National Partnership Agreement, signed by the Commonwealth and state and territory governments.

For more information on HomeBuilder, including eligibility, visit: Treasury Coronavirus Economic Response website.