22 Oct Buying a Home & HomeBuilder Funding
Eligible Australian owner-occupiers can now apply for grants of $25,000 to build new homes or undertake major renovations.
The Morrison Government has finalised a new package that would offer grants of $25,000 to encourage new home builds, in a bid to prop up the pained building industry that has taken a hit during the coronavirus-induced economic downturn.
It is also the latest in a series of measures designed to pump money into the economy, and its announcement came just a day after Australia’s first recession since the early 1990s became official.
HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations.
HomeBuilder applicants will have to meet eligibility criteria to successfully receive the grant of $25,000, including income caps and limits on the value of new home builds, which are likely to exclude more well-to-do buyers from accessing the grants. Renovators would have to meet the same income thresholds, but must also have plans to spend a great deal more than the value of the grant to secure the funding. Here’s the full list of eligibility criteria:
- You must be a “natural person”, not a company or trust
- You must be at least 18 years old
- You must be an Australian citizen
- You must meet one of the following two income caps:
- $125,000 per year for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per year for a couple based on both tax returns for 2018-19 or later
- You must 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 people wishing to build a new home or renovate an existing home as an investment property are not eligible for HomeBuilder.
Treasurer and Minister for Infrastructure and Planning Cameron Dick said the range of financial incentives available for home builders and renovators would help Queensland unite and recover to support local jobs.
“In addition to HomeBuilder, first homeowners in Queensland can get the $15,000 Queensland First Home Owners’ Grant.
“For regional Queenslanders, our $5000 Regional Home Building Boost is providing extra support to offset the cost of construction or purchase of a new house or apartment outside the south-east corner,” he said.
“This means that new first home buyers in regional Queensland can access up to $45,000 in grants to help them achieve their property dream.
“This will provide a huge hand-up to regional Queenslanders who want to secure their first home.”
Visit qld.gov.au/housing/buying-owning-home to access the application form and find out more about financial support to build your home in Queensland.