Construction Industry Stimulus Home Builder Program

|by Steve Payne|Private Advisory Services,Property, Construction and Building Services

The Federal Government has unveiled its HomeBuilder scheme, which has been designed to help Australia’s Residential Construction Industry bounce back from the Corona Virus crisis.

The package will see eligible owner-occupiers (including first home buyers) who are either building or undertaking substantial renovations, paid a non-taxable grant of $25,000 for doing so.

HomeBuilder will apply to construction contracts which are in place and signed between 04th June 2020 and 31st December 2020, with work to be commenced within 3 months of the contract date.

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Eligibility

To be eligible for HomeBuilder, you must be :

  • The owner-occupier of the property
  • A natural person (not a company or trust)
  • At least 18 years old
  • An Australian citizen

Income Caps

You must also meet one of the following 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 and later.

Categories

You need to enter into a building contract by 31st December 2020 to :

  • Build a new home as principal place of residence, where the property value does not exceed $750,000; or
  • Substantially renovate your existing home as a principle 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.

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Ineligible Contracts

  • Owner-builders
  • People seeking to build new or renovate an existing home as an investment
  • Contracts not at arm’s length or not at a commercial / fair market price

Types of renovations

  • Renovation works must be to improve the accessibility, safety and liveability of the dwelling
  • It cannot be used for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, shed or garages

For further details, please refer to our Fact Sheet here

As always, if you have questions in this area or would simply like to know more information on how it may apply to your situation, please do not hesitate to contact one of the Cordner Advisory team on (07) 5504 5700 so we can discuss the matter and solutions with you.

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