A Reason to Renovate

The HomeBuilder Stimulus Scheme

As we move out of lockdown from Covid-19, part of the stimulus package the Australian Federal government is offering $25,000 cash grants for buyers of freshly built homes or those renovating their property. 

If you’ve been thinking about renovating your home and creating a seamless connection between your indoor and outdoor space, this could be a great opportunity to make your lifestyle dreams come true. 

Unlike many of the first home buyer grants of between $7000 – $20,000 administrated by state governments, this new scheme will have its limitations, and it cannot be used by anyone who’d just like to build a new patio, pool, or cheaply renovate their bathroom or kitchen.

To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:

• 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 into 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;

• Construction must commence within three months of the contract date.

With the ‘HomeBuilder’ scheme, the $25,000 cash grant will be restricted to people on middle incomes and to new homes and major renovations valued between $150,000 to $750,000.

If you meet the eligibility criteria, you can apply for the $25,000 grant between now and December 31, with the work contracted to start within three months of the contract date.

Grants must be spent to:

• Build a new home as a principal place of residence valued at up to $750,000 (including land); or

• Substantially renovate an existing home as a principal place of residence, with renovations valued at between $150,000 and $750,000 and the dwelling not valued at more than $1.5m before the renovation.

The Housing Industry Association estimates at least 14,000 renovations costing over $150,000 are undertaken each year.

Ken Morrison, Chief Executive of the Property Council of Australia, said the Australian economy requires “big and bold thinking” to get going again following the effects of the COVID-19 pandemic.  

“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 1 million workers in the sector including builders, painters, plumbers and electricians across the country...”

— Ken Morrison

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