Australians interested in building a home may have heard of the new $25k homebuilder scheme, which offers grants of up to $25,000 for both new and existing home projects. Not only can it help with building a new home from scratch, but it can contribute to you renovating an existing home. Although it has specific rules on how it can be used, the homebuilder program can contribute to stamp duty payments and ensure that you can get closer to your dream home without having a large impact on your finances.
About The Scheme
On Thursday 4th June 2020, the new scheme was announced, along with the conditions required to qualify. Each $25,000 grant is meant to help first home buyers bring their dream home to life without putting themselves in high debt, as well as letting existing homeowners improve their living conditions or make their property safer and more accessible. Prime Minister Scott Morrison has openly stated that it “isn’t just about helping Australians bring their dream home to life, it’s about creating jobs” and that each grant contributes towards supporting over one million workers in the construction sector.
Combined with the usual first home loan deposit scheme options available in each state and territory, this can give potential homeowners a chance to build their first home or renovate an existing property. Aside from creating jobs and helping the construction industry workers in this sector, it can offer a homebuilder a much easier way of creating their perfect home.
The announcement of this program was partially to stimulate the economy, giving people who work in the construction industry a chance to boost their income and take on more work without pressuring homeowners to spend their own money on changes that they don’t want. While the Government predicts that many of the house projects will be a building contract, vital renovations and adjustments to disabled access are also covered in the same way.
Aussie Lifts can offer custom-designed lifts that make your home more accessible. Whether it is your first home or a property that you have owned for years, a home lift can be an excellent addition to a construction or renovation contract, offering greater accessibility and liveability to all properties that need it. With lead times from 6 weeks and extremely well-designed lifts that can be customised for each property, this scheme can assist homeowners build their first home within three months of the decision to build or renovate. A lift will be that extra piece which adds value to the property and ties it all together.
When it comes to disabled access and other situations where a lift is essential for easy living space access, Aussie Lifts can offer a wide range of adjustments, such as larger lift cars to accommodate wheelchairs. Installation can be quick and disruption is minimal meaning that other projects like a bathroom renovation or home extension won’t be interrupted. If you are a first-time homebuilder who has a disabled family member or another important reason for constructing a lift, this grant could help you afford a custom-designed lift manufactured right here in Australia. With Aussie Lifts, you can ensure that your money also goes to local workers in the sector, meaning that your homebuilder grant supports an Australia-based business
How do I qualify?
To help first home buyers and builders know how to access the homebuilder grant scheme effectively, here is a quick overview of all the key information you will need to apply for the $25,000 grant, either for new homes or existing homes.
To be eligible for a grant of up to $25,000, you must be:
- A landowner or prospective landowners – an investment isn’t enough.
- An individual (not a company, etc.)
- An Australian Citizen.
- Earn less than $125,000 annually (or less than $200,000 for couples).
- These rules apply regardless of whether you want to build a new home or renovate an existing home.
What is it for?
You can only spend your homebuilder grant on expenses that relate to home builders or renovators. This can include:
- Purchasing land for residential construction (if you don’t own it already).
- Costs to build a new home (including materials, contractors, etc.)
- Renovations valued between $150,000 and $750,000, as long as your home is not worth at least $1.5 million before renovations commence. Ideally, these renovations should make your home more liveable, accessible and/or safer.
All of this work must be carried out by a licensed or registered builder and varies in each state and territory. Make sure that you understand the key information about hiring contracted homebuilder services in your state or territory ahead of time.
Remember that the grant is capable of helping support new homeowners who might be concerned about stamp duty taxes and other legal document payments, such as purchasing ownership of the land around your property.
Where do I apply?
The $25,000 homebuilder grant scheme runs from 4 June 2020 and 31 December 2020. To access the grant, you must apply within this time period and begin the construction within three months of the contract date. Again, this applies to both first home buyers and existing homeowners. After 31 December 2020, the grant will no longer be available.
To apply for one of these homebuilder grants, get in contact with the revenue office in your territory or state. You will have to send all required information across between 4 June 2020 and 31 December 2020, so don’t wait too long to make your decisions. If you don’t send the information across before the closing date, you may not be able to get the homebuilder grant, especially if construction hasn’t begun.
Remember that you can only get the grant if you fit within with the prescribed rules and criteria outlined above. Your exact situation may vary based on location, so be aware of local differences or specific regulations that might be in place.