As announced on 4 June 2020, the Australian Federal Government will be giving eligible Australians $25,000 to build or substantially renovate their homes in a bid to help the residential construction market get through the impact that COVID-19 has made. Which means now is the perfect time to complete the renovations you’ve been thinking about for years with the help of a government grant and record low interest rates!
“This investment isn’t just about helping Australians bring their dream home to life, it’s about creating jobs and helping support the more than one million workers in the sector including builders, painters, plumbers and electricians across the country,” – Scott Morrison.
We understand that you may have some questions in regards to this grant so we have answered some of the frequently asked questions we’ve been receiving below:
What works qualify for the grant?
- A substantial renovation to any owner-occupier’s existing home, valued between $150,000 and $750,000 where the property must have been valued at under $1.5m before the renovation
- A new home build as a principal place of residence valued up to $750,000, including land
What are the key conditions that must be met for my project to be eligible?
- Building contracts must be entered into between 4 June 2020 – 31 December 2020
- Construction of a new home or substantial renovation must be contracted to commence within 3 months of the contract date
How will it work?
- Owner-builders and those seeking to build a new home, or renovate an existing home as an investment property are ineligible for HomeBuilder.
- Funding will go directly to the individuals, not the contractors, and the individuals are committing a significant amount of investment themselves that this grant will complement.
Who qualifies for the grant?
- HomeBuilder provides 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.
- HomeBuilder complements existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
- To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
- Be an individual, not a company or trust
- Be aged 18 years or older
- Be an Australian citizen
- Have an income capped at $125,000 per annum for an individual applicant, based on 2018/19 tax return or later; or
- Have an income capped at $200,000 per annum for a couple, based on your combined 2018/19 tax return or later
What renovations will be eligible?
- The grant will not cover detached structures outside the house such as swimming pools, tennis courts, outdoor spas and saunas, granny flats, garage and shed.
- The renovation works must improve the accessibility, safety and liveability of the dwelling
- No DIY jobs – the works must be done by a registered or licensed builder, not an owner-builder
For further information, click here.
Knowing all of this, it’s important that we make you aware of the time consumption in the design and planning stage of a renovation. We are a full service building company and stress the importance of design and preliminaries in conjunction with a professional builder.
There are 3 stages to our design process:
- Concept Design
- Final Approvals
Now, depending on what stage you’re at determines how much time you’ve got to apply and qualify for the HomeBuilder grant. But for this example, let’s just say that you’re home renovation is simply an idea in your head. You kind of know what you’re after and have been wanting to begin for a while but you’re not sure where to start.
The entire process from your initial site meeting with us to signing a fixed price contract can take at least 6 months. With efficiency and quick decisions, we can certainly sign a building contract before 31 December 2020, but this is why it is so important to start the process NOW. It’s not as simple as getting a design done and signing a contract, design and preliminaries are very involved and require a collaborative effort between all parties (builder, client, architect, engineers, consultants and more).
So when we say that now is the perfect time to take advantage of this opportunity, we mean it! If you have any questions regarding the grant or home renovations, call us on 8366 2225 or book a call.