Home Builder grant will provide eligible owner-occupiers (including first home buyers) with $25,000 to build a new home or substantially renovate an existing home.
Highlights:
- Only Australia citizens can take advantage of the Home Builder Grant.
- Citizens buying their first home will get the most benefit.
- There are certain conditions that must be met to get a Home Builder Grant
It is a time-limited grant program to help the residential construction market to bounce back from the Coronavirus crisis.
"But there are some conditions for its eligibility," Mr Navjit Singh Matta, Sydney-based home loan specialist told SBS Hindi.
“Home Builder is a time-limited, tax-free grant program to help the residential construction market to get through the Coronavirus pandemic.”
Navjeet Singh Matta, Founder Director, Gain Home Loans Source: Supplied / N S Matta
Mr Matta says the Home Builder grant will be available for building contracts signed between 4 June and 31 December 2020, where construction or renovation commences within three months of the contract date.
"However, you cannot use this grant to get some work done at home," he says.
The grant also cannot be used for additions to the property that are not connected to the home, such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages.
Source: Pixabay
- 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 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 (house and land) 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 (house and land) does not exceed $1.5 million.
Mr Matta says that the Home Builder Grant Scheme is only for Australian citizens.
"It means, the permanent resident will not be able to take advantage of it," he added.
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The program will be uncapped but the government expects it will cost $680 million, which roughly equates to around 27,000 grants.
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