$25,000 HomeBuilder Grant
05/06/2020
On Thursday 4 June the Federal Government announced a $25,000 grant for new housing construction.
The Federal Government announced a $25,000 grant that will give eligible Australians $25,000 to build or substantially renovate their homes in an effort to boost demand in the construction sector and ease a predicted downturn. This is a good step forward, particularly in light of industry predictions that the economic downturn associated with the COVID-19 pandemic could see a sharp decline in building projects in the pipeline. However, there are a number of limitations associated with the qualification criteria for this grant which should be highlighted. The key points of the grant are as follows:- Applicable to natural persons who are Australian citizens over 18 years
- Applicant’s income capped at $125,000 p.a. for individuals and $200,000 p.a. for couples based on the 2018-19 tax return or later
- Must enter into a building contract between 4 June 2020 and 31 December 2020 to either:Building or renovating an investment property will not be eligible
- Build a new home (value including land not exceeding $750,000) as a principal place of residence; or
- Substantially renovate an existing home (value not exceeding $1.5m) as the principal place of residence, where the renovation contract is between $150,000 and $750,000.
- Construction must commence within 3 months of the contract date and be undertaken by a registered or licensed building service contractor who has held the building licence or endorsed contractor license prior to 4 June 2020
- Contract dealings must be at arm’s length and the contract price should not be inflated compared to fair market price.
How we can help
Contact our property experts below to discuss you eligibility and what opportunities this grant may present to your business.Get in touch
James Ye |
Daren McDonald E [email protected] |