The HomeBuilder grant will award $25,000 to successful applicants building or renovating their house

The $25,000 HomeBuilder Grant

The Federal Government has just announced the HomeBuilder grant as another component of the economic stimulus package. HomeBuilder pledges $25,000 to eligible applicants who are building or renovating their homes. Those who sign a building contract between June 4 and December 31, 2020, will be able to apply for the grant.

Although no cap has been set, the scheme is expected to cost up to $688 million. At this point in time, every successful applicant will be awarded the $25,000 grant.

Australia’s Construction Industry

HomeBuilder has been unveiled with the objective of stimulating the Australian construction industry. This is part of the ‘tradie-led recovery’ of the economy. Construction has faced massive disruption in the wake of the Coronavirus crisis – a 30% drop in the industry has seen the number of new builds forecast fall from 171,000 to 111,000 nationally.

Income Test and Eligibility

Applicants must pass an income test in order to apply. Individuals can only be eligible if they’re earning under $125,000 pa, whilst couples can only be eligible if they earn less than a combined $200,000 pa.

Beyond the income test, the eligibility details are as follows:

  • Available for new home builds valued up to $750,000
  • Available for renovations budgeted at $150,000 and over, only on properties valued under $1.5 million
  • Unavailable for investment properties

 

The $150,000 minimum cost for renovation eligibility is to encourage significant commitment to investment in the construction industry. Those who are seeking the grant for a renovation should also be aware that it cannot be used for additions outside of the home. These include pools, tennis courts, patios or sheds.

First Home Builders

Any individuals or couples who are considering building for the first time should also look into the First Home Owner Grant (FHOG). Successful metropolitan applicants to the scheme will be awarded $10,000, while regional applicants will be awarded $20,000. This means people in the Campaspe Shire Council (or other regional councils) can receive up to $45,000 cash back.

 

These grants present an excellent opportunity to moved forward with any planned builds. Take comfort in the knowledge that you’re supporting the reinvigoration of the Australian economy as well.

If you’re interested in learning more about the HomeBuilder grant, reach out to the team at Provide Finance.