June 5, 2020
The federal government of Australia has announced a new scheme that will provide owner-occupiers and first-home buyers with a cash grant to help them construct a new house or renovate their existing property.
Under the program, eligible owner-occupiers will be able to receive $25,000 non-taxable grant for their home construction and renovation projects. To be eligible, applicants must meet the income caps of $125,000 for singles and $200,000 for couples.
The HomeBuilder scheme also set a national dwelling price cap of $750,000, which will apply for new home builds, and a renovation price range of $150,000 up to $750,000. The current value of the existing home to be renovated should be no more than $1.5m. The timing of the construction work should start within three months of the contract date.
Existing state and territory mechanisms will be used to distribute HomeBuilder payments. The state and territory governments will process applications for the scheme until the end of the year.
All dwelling types — houses, apartments, off-the-plan units, and house and land package — are eligible under the scheme. Properties which will be used as an investment property will not be allowed under the program.
The scheme is aimed to complement other existing homebuyer schemes such as the First Home Owner Grant programs and the First Home Loan Deposit Scheme.