How The HomeBuilder Grant Can Assist You

HomeBuilder grant renovation

Thinking of renovating? Long dreamt of a new kitchen, bathroom or full home renovation?

Then the Government’s HomeBuilder grant of $25,000 may be an incentive to act now.

Working with established builders, Retreat Design regularly undertakes large scale projects for new builds and full home renovations that are substantial enough to qualify for the $25,000 grant.

Here’s what you need to know:

 

Summary

HomeBuilder is a time-limited grant program to help the residential construction market to bounce back from the Coronavirus crisis.  HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date.

 

Eligibility

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.

 

Process and timing

HomeBuilder will be implemented via a National Partnership Agreement, signed by the Commonwealth and State and Territory governments. This approach will utilise existing state and territory mechanisms to distribute the HomeBuilder payments. When the States and Territories begin accepting HomeBuilder applications, they will backdate acceptance of these applications to 4 June 2020.  Information on when and how you will be able to access HomeBuilder will become available through the relevant State or Territory revenue office.

 

Who gets the grant?

The homeowner applies for the grant once they have signed a building contract with a registered builder. The grant (if you are deemed eligible) is paid directly to the homeowner. The homeowner pays the builder for claims during the project as per usual. The builder does not access the grant at any time.

 

Conditions

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).

 

 

What does this mean for me and my home? 

We recommend getting in touch with Retreat Design as soon as possible to get the ball rolling and start the design process which inevitably takes a few weeks. From here we can guide you through the necessary steps to engage the right builder for your works and apply for this once in a lifetime cash handout that will add value to your home. Give us a call on (08) 6101 1190 or email [email protected] for more information.

 

Case Study Example (as per the Government Treasury Website)

“Owner-occupier Cassidy decides to substantially renovate her home Cassidy enters into a contract to substantially renovate her home on 31 December 2020, with renovations valued at $400,000. The value of her home is $900,000 (this includes the value of the house and the land). Cassidy pays the builder $10,000 to commence renovation of her home on 2 February 2021. Cassidy then applies directly to her State or Territory revenue office to receive the $25,000 HomeBuilder grant.
The revenue office conducts the eligibility checks and confirms that Cassidy owns the property, is an Australian citizen, over the age of 18, and has a taxable income under $125,000 based on her 2019-20 tax return. The revenue office also confirms the value of the renovations is between $150,000 and $750,000, and the value of her home is less than $1.5 million and Cassidy has made the first progress payment on the renovations. The revenue office approves the application. ”

 

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About the Design Blog

Welcome to the Design Blog. Here we're sharing the latest kitchen and bathroom products from our Italian manufacturers. We'll also bring you inspiring kitchen renovations and beautiful bathrooms. Feel free to ask questions in the comments.