2 December 2020

HomeBuilder Grant Extension - Update 29 November 2020

The Prime Minister, Treasurer and Assistant Treasurer have extended and adjusted the scheme. The extension to the HomeBuilder program includes:

  • Extending the eligibility for HomeBuilder from 1 January 2021 to 31 March 2021
  • Tapering the grant to $15,000 for eligible owner-occupiers who sign contracts between 1 January and 31 March
  • Extending the commencement window by 6 months (end of September 2021)
  • Increasing the price cap for new builds in Victoria and New South Wales to $850,000 and $950,000 respectively.

Further information on the HomeBuilder program, including eligibility, can be found at https://treasury.gov.au/coronavirus/homebuilder

HomeBuilder Grant

The Federal Government has announced a $25,000 HomeBuilder grant for the construction of new homes, or substantial renovations for existing homes.

The HomeBuilder program will be available to eligible owner-occupiers (not just first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is entered into between 4 June 2020 and 31 December 2020.

Construction of a new home or substantial renovation must be contracted to commence within three months of the contract date.  The grant will complement existing State and Territory First Home Owner grants, stamp duty concessions and other schemes. It will be implemented through existing state revenue office schemes.

Eligibility for HomeBuilder

Owner-occupiers seeking to access the program must meet the following eligibility criteria:

  • Australian citizen, aged 18 years or older – an individual, not a company or trust
  • Income of $125,000 per annum for an individual applicant, or $200,000 for a couple based on 2018/19 tax return or later;
  • Enter into a building contract between 4 July 2020 to 31 December 2020 to either build a new home as a principal place of residence valued up to $750,000 (including land); or substantially renovate existing home as a principal place of residence, with renovations valued at between $150,000 and $750,000 with the dwelling not valued at more than $1.5 million before the renovation;
  • Construction must be contracted to commence within three months of the contract date.

Owner-builders and those seeking to build a new home or renovate an existing home as investment property are ineligible for HomeBuilder.

Renovations or building work must be undertaken by a registered or licensed building service 'contractor' (depending on the state or territory) and named as a builder on the building licence or permit. They must have held the building licence or endorsed contractor licence prior to today’s announcement.

The registered or licensed builder must demonstrate that the contract price for the new build or substantial renovation be no more than a comparable product (measured by quality, location and size) as of 1 July 2019, if requested by the purchaser.

You could access the $25,000 HomeBuilder grant when you buy at the following Village projects: