The plan was formally announced by Prime Minister Scott Morrison and Treasurer Josh Frydenberg yesterday, immediately sparking fury among critics who claim the fine print means very few Aussies will actually benefit from it.
But if you are one of the lucky few who will be eligible for the scheme, you’ll likely be celebrating the announcement – and scrambling to apply.
Here’s what you need to know.
WHAT IS IT?
For a limited time, the HomeBuilder grant program will deliver $25,000 grants to help the residential construction industry recover form the coronavirus crisis.
Under the scheme, eligible owner-occupiers – including first home buyers – will get the payment to build a new home or “substantially renovate” an existing one.
The contract must be signed between June 4 and December 31, 2020, and construction must commence within three months of the contract date.
HomeBuilder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes. Also including the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme, which means you could potentially get more than double the grant depending on where you live.
EXACTLY WHO GETS IT?
The $688 million HomeBuilder program will be available to Aussies who are building a new home worth less than $750,000.
It can also be put towards renovations worth between $150,000 and $750,000 that will result in the property being priced at $1.5 million or less.
The cash can’t be used on investment properties or to construct things outside the house such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages, and the work must be carried out by a licensed builder.
It will be means-tested and will only be available to singles who earn less than $125,00 a year or $200,000 per couple.
RORTING CRACKDOWN ON THE HOMEBUILDERS GRANT
When rumors of the program first started swirling, there were concerns it could be hijacked, but the government has committed to “integrity measures” to stop that happening. These include “strict eligibility criteria, price caps and income caps to manage demand and support residential construction activity”.
Other measures include:
• Owner-builders and those seeking to build a new home or renovate an investment property are ineligible.
• The registered or licensed builder must demonstrate that the contract price for the new build or substantial renovation is no more than a comparable product (measured by quality, location and size) as at July 1, 2019, if requested by the purchaser.
• The renovation works must be to improve the accessibility, safety and liveability of the dwelling, which means the money can’t be spent on additions to the property like swimming pools, tennis courts, outdoor spas and saunas, sheds or garages unconnected to the property.
• The contract must be made by two parties independently of each other and without some special relationship, such as being a relative. The terms of the contract should be commercially reasonable and the contract price should not be inflated compared to the fair market price.
HOW DO I APPLY?
According to the Treasury website, Australians will be able to apply for HomeBuilder grant after their state or territory government signs the National Partnership Agreement with the Commonwealth Government.
So far, critical information such as when you’ll be able to sign up and how you can apply will be available through the relevant state or territory revenue office in the near future.
Visit business.gov.au for updated state and territory information as it becomes available.
You can download the Governments HomeBuilder Grant Fact Sheet here
Article Source: news.com.au Author: Alexia Carey
Find more information on the HomeBuilder Program in our Get the New Home Renovation Grant Post