There is good news out of Canberra with the announcement of the $680 million HomeBuilder package. The Federal Government introduced its HomeBuilder package on 4 June 2020.
The HomeBuilder package
The big winners are owner occupiers and first home buyers. The government is prepared to compensate owner occupiers and first home buyers if they choose to buy a new or off-the-plan property in the remainder of 2020. This is what you need to know.
Owner occupiers:
From now until the end of the year, the scheme will provide eligible owner-occupiers with a grant of $25,000 to buy an off the plan property up to $750,000 in value.
First home buyers:
First home buyers will be eligible for up to $35,000 – $45,000 !! They will be entitled to receive the $25,000 HomeBuilder package. Additionally there is the $10,000 First Home Owner Grant (FHOG) or $20,000 for new homes built in regional Victoria when buying off the plan.
To be eligible for the HomeBuilder package, you must:
- Be an Australian citizen aged 18 years or older.
- Be an individual, not a company or a trust.
You must also meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on your 2018/19 tax return or later; or
- $200,000 per annum for a couple based on both 2018/19 tax returns or later.
You need to enter into a building contract between 4 June 2020 and 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 (house and land) does not exceed $1.5 million;
The HomeBuilder package is only approved if construction commences within six months of the contract date. For example, if you signed a contract on August 15, 2020 the build must commence on the November 15, 2020. If you signed a contract on the 31st December 2020, the build must commence on the 30th June 2021.
What does the HomeBuilder package not cover?
The grant cannot be used for any additions to the property which are not connected to the home, such as swimming pools, tennis courts, outdoor spas and saunas, sheds, or garages.
Government expects it to help employment
Based on the Government’s estimate of 27,000 grants, the $10 billion in building activity will be supported by the scheme, along with the viability of 368,000 small builders and tradies. These businesses employ 800,000 people in communities around Australia.
For more information click the below links or visit https://treasury.gov.au/coronavirus/homebuilder
· HomeBuilder – Facts Sheet – Click Here
· HomeBuilder – Frequently Asked Questions – Click Here
If you have any queries or concerns, please contact us.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
June 2020
