With the Government’s HomeBuilder package announced on 4 June 2020, home owners or those looking to build could receive $25,000 for the purpose of renovating an existing house or building a new one. So what is the eligibility criteria and what do you need to know?
• You will need to spend to receive. For home owners, that requires you to spend between $150,000 – $750,000 on renovations to your existing home or for those intending to build, it means building a home to a maximum value of $750,000.
• You will need to enter into a renovation contract or domestic building contract by 31 December 2020 with construction to commence within 3 months of the contract date.
• The builder must be a licensed builder and must be independent, therefore not a family member.
• Construction or renovation costs must be at fair market value. If a home owner suspects a builder has increased their costs they are entitled to ask for evidence of the costs compared to the same time last year.
• The house, or yet to be constructed house, must be your principal place of residence.
• The building works must not relate to external works such as a swimming pool/spa, shed, detached garage, or tennis court.
• You must not earn more than $125,000 p.a for an individual or $200,000 collectively for a couple based on tax returns for the 2018-2019 year.
• For existing houses, the value of the house before renovations must be less than $1.5 million.
• The renovations must enhance the liveability, accessibility or safety of the house.
• You must be an individual (not a company or trust), at least 18 years of age and an Australian citizen.
• Depending on your circumstances, the HomeBuilder grant will not impact on your ability to claim any other grant or scheme (such as the First Home Owner Grant, First Home Deposit Scheme and First Home Super Saver Scheme) nor will it impact any stamp duty exemption or concession that you are entitled to.
• Owner-builders or individuals seeking to build a new home or renovate an existing home as an investment property are ineligible for the HomeBuilder grant.
The purpose of the HomeBuilder grant is to assist the residential construction market during a period in which it expects to see a significant downturn in the industry.
If you are thinking about taking advantage of the HomeBuilder grant, Robertson Hyetts Lawyers provide conveyancing services and advice on property, building and renovation contracts. Contact us today on 5434 6666 in Bendigo or 5472 1588 in Castlemaine.