HomeBuilder Grant Extension

HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant to build a new home or substantially renovate an existing home. HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations.

The Government will continue its support for the residential construction sector by extending the HomeBuilder program to 31 March 2021.

Summary

Changes to the HomeBuilder program include:

  • A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
  • An extended deadline for applications to be submitted. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
  • An extension to the construction commencement timeframe from three months to six months. This will apply to all eligible contracts signed on or after 4 June 2020.
  • An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive. The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
    • The existing substantial renovation price cap will continue to apply; the value of the property (house and land) cannot exceed $1.5 million (pre-renovation).
  • Reset the requirement for builders to have a valid licence or registration.
    • Where an eligible contract is signed on or after the 29 November 2020, the builder must have a valid licence or registration before 29 November 2020.
    • Where an eligible contract is signed before 29 November 2020, the builder must have a valid licence or registration before 4 June 2020.

Eligibility

To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:

  • You are a natural person (not a company or trust);
  • You are aged 18 years or older;
  • You are an Australian citizen;
  • You meet one of the following two income caps:
    • $125,000 per annum for an individual applicant based on your 2018-19 taxable income or later; or
    • $200,000 per annum for a couple based on both 2018-19 taxable income or later;
  • For the $25,000 grant: you enter into a building contract on or after 4 June 2020 up to and including 31 December 2020 to either:
    • build a new home as a principal place of residence, where the property value 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, and where the value of your existing property does not exceed $1.5 million (pre-renovation); or
  • For the $15,000 grant: you enter into a contract on or after 1 January 2021 up to and including 31 March 2021 to either:
    • build a new home as a principal place of residence, where the property value does not exceed: $950,000 if the dwelling is in New South Wales; $850,000 if the dwelling is in Victoria; or $750,000 in all other States;
    • substantially renovate an existing home as a principal place of residence, where the renovation contract is greater than $150,000 and does not exceed $750,000, and where the value of your existing property does not exceed $1.5 million (pre- renovation).
  • Construction must commence on or after 4 June and within six months of the contract date.

Contract values listed are GST inclusive.

The owner-occupier must be registered on the title of the property. If more than one person is listed on the title as the registered proprietors they must jointly apply for the HomeBuilder grant as a couple.

Construction must be undertaken by a registered or licenced building service ‘contractor’
(depending on the State or Territory) who is named as a builder on the building licence or permit. The contract must be with a developer or a licenced or registered builder. The builder must have held their licence or registration prior to 4 June 2020 if the contract is signed prior to 29 November 2020. Otherwise, the builder must have had a valid licence or registration dated prior to 29 November 2020 if the contract is signed on or after 29 November 2020.

 

Integrity measures

  • Owner-builders are ineligible for HomeBuilder.
  • Investment properties are ineligible for HomeBuilder.
  • In negotiating a building contract, the parties must deal with each other at arm’s length. This means the contract must be made by two parties freely and independently of each other, and without some special relationship, such as being a relative. The terms of the contract should be commercially reasonable and the contract price should not be inflated compared to the fair market price.
  • Renovations or building work must be undertaken by a registered or licenced building service ‘contractor’ (depending on the state or territory you live in) and named as a builder on the building licence or permit.
  • The renovation works must be to improve the accessibility, safety and liveability of the dwelling. It cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).
  • HomeBuilder is non-taxable in the hands of the recipient – consistent with existing state and territory First Home Owner Grant programs.

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