Who Is Eligible For The Government’s $25,000 Homebuilder Grant?

Who Is Eligible For The Government’s $25,000 Homebuilder Grant?

Eligible Australians will receive $25,000 cash grants to cover home building or renovation, in an attempt to boost new projects in the construction industry and build 30,000 homes by end of year.

The announcement follows weeks of lobbying by industry bodies for the Government to support Australia's home builders and tradies.

Scott Morrison says these grants will go a long way in helping the economy recover from coronavirus.

"If you’ve been putting off that renovation or new build, the extra $25,000 we're putting on the table, along with record-low interest rates, means now's the time to get started."

To be eligible for the grants, homeowners will need to meet the following criteria:

•             The HomeBuilder package is restricted to owner occupiers who are planning new builds or substantial renovations and requires recipients to have already spent at least $150,000.

•             The grants can be used on new homes valued at under $750,000 (including land), or on renovations worth between $150,000 and $750,000, so long as the pre-renovation value of the property is below $1.5 million.

•             According to the Morrison government, construction must commence within three months of the contract date.

•             Investment properties are not eligible for the subsidy.

•             Renovation work will not include structures separate to the main property, such as swimming pools, tennis courts and sheds.

•             Owners will not be able to receive the payment if they intend on building or renovating on their own. A licensed builder must be enlisted to complete the works.

•             The grants will be limited to individuals earning less than $125,000 per year and couples earning less than $200,000 per year.

The Government has forecast the HomeBuilder program could cost up to $688 million, which would translate to about 27,500 people or couples successfully applying for the grants.

However, like the Government's JobKeeper program, HomeBuilder will be available to anybody who successfully applies, meaning no final costing has been given.

The grants are available from June 3rd, 2020 and will run until the end of the year.

If you would like to learn more about the Government grant or would like to chat with our friendly team regarding your real estate needs, please contact us on 9707 5300 or 5942 1207.

Information source: abc.net.au & afr.com

What to read next?