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HomeBuilder Program extended

Dec 9, 2020 | Budget 2020-21, Finance, News, Real Estate

HomeBuilder Grant extended

On Sunday 29 November 2020, the Federal Government announced that the HomeBuilder program is now extended to 31 March 2021, but in a modified form. The program was due to end on 31 December 2020.

What is the HomeBuilder Grant?

On June 3 the Federal Government announced the HomeBuilder program which provides for a grant of $25,000 for new build or substantial renovations.

The main points, in order to qualify for the original program:

  • The building contract must be signed between 4 June 2020 and 31 December 2020 inclusive.
  • Significant Construction to begin within 3 months (now extended to 6 months)
  • Property value up to $750,000 for new builds
  • A ‘Substantial Renovation’ is defined as $150,000 or higher
  • Must use a builder/developer licenced before  4 June 2020
  • Single applicants must earn below $125,000, Couples up to $200,000.

More details can be found here

What has changed?

The key changes are:

  • New building contracts signed between 1 Jan 2021 and 31 March 2021, will receive a HomeBulider Grant of $15,000 instead of $25,000.
  • The ‘Significant Construction’ period has been extended from 3 months to 6 months from the contract signing date.
    (Significant Construction effectively means the completion of the slab in most cases.)
  • This 6 months timeframe also applies to building contracts signed under the original $25,000 HomeBuilder Grant.
  • If an eligible contract is signed on or after 29 November 2020, then the builder or developer must be registered or licenced before 29 November 2020.
  • All applicants now have until 14 April 2021 to submit their applications.
HomeBuilder program criteria Contracts signed between 4 June and 31 December 2020 (inclusive) Contracts signed between 1 January and 31 March 2021 (inclusive)
Grant amount (new builds and substantial renovations) $25,000 $15,000
Construction commencement timeframe Construction must commence within six months of the contract being signed.
New build price cap Property value cannot exceed $750,000

Property value cannot exceed:

  • $950,000 in NSW;
  • $850,000 in Victoria; or
  • $750,000 in all other States and Territories.
Substantial renovation price cap The value of the property cannot exceed $1.5 million (pre-renovation).
Application deadline Applications must be submitted to the relevant State Revenue Office by 14 April 2021.
Licensing requirements for builders/developers
  • Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
  • Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Other eligibility criteria Existing program eligibility criteria remain.

Source: https://treasury.gov.au/coronavirus/homebuilder

What about WA’s Building Bonus Scheme?

  • In June, the WA State Government also announced a New Home Construction Grant of $20,000, for new builds where the contract is signed by 31 December 2020.
  • While the Federal grant is only available to owner-occupiers, the State grant is available to both owner-occupiers and investors, and unlike the Federal program is not means-tested.
  • The original time period for Significant Construction to begin was set at 6 months from the date of the contract.
  • In October Mark McGowan extended this time period for an additional six months to 12 months from the date of the contract, but the building contract still needs to be signed before 31 December 2020, in order to qualify.

More details can be found here.

Western Australian Building Bonus

Still have questions? we are here to help

Qualifying and accessing these grants as well as the First Time Homeowners Grant, and stamp duty concessions can give you a head start of almost $70,000. Each of these programs has its own rules and requirements, so let us help you to navigate the process, and ensure that you get all you are entitled to. We can also help you to get finance. With over 40 lenders on our system, each with multiple offers and options, we are sure to find a plan that suits you and your circumstances.

Reach out to us at consulting@austasiagroup.com, for a no-obligation chat about the HomeBuilder Grant, where we can answer any lingering questions you may have.

Date Published: December 09, 2020 | Last Modified: January 20, 2021