This morning it was announced that the Australian Government would give grants of $25,000 to owner-occupiers for new builds or certain works on their homes. You do not have to be a first home buyer to access the tax-free grant.
The scheme will not apply to investment properties or owners who intend on building or renovating on their own without the help of builders.
The scheme intends to help ease the predicted downturn in construction demand and expects to benefit around 27,500 people/couples.
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 tax return or later; or
– $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- you 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 does not exceed $1.5 million;
- construction must commence within three months of the contract date.
Owner-builders and those seeking to build a new home or renovate an existing home as an investment property are ineligible for HomeBuilder. In negotiating a building contact, 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).
Applications for the HomeBuilder Grant will be made available in the coming days through QLD Revenue Office.
Author
Kate Lindquist
