The construction industry is one of the pillars of the Australian economy. It’s responsible for around 9 per cent of the country’s Gross Domestic Product and employs over 1.1 million people. It is especially crucial for the economy’s recovery from COVID-19, which put a stop to plenty of construction projects, including residential home construction.
However, another reason people had to postpone the construction of their home is that home building requires a significant budget. And because no one can be sure what the next few months will look like, a lot of people chose to save their funds for future security.
Now that Australia is slowly lifting itself from the effects of the COVID-19 pandemic, the government wants to encourage people to start renovating their existing home, or building their dream house (if they had been renting apartments in Townsville), with the help of the HomeBuilder grant.
What is the HomeBuilder Grant?
The Treasury defines HomeBuilder as a grant that “will assist the residential construction market by encouraging the commencement of new home builds and renovations.”
In May, the Master Builders Association said that the construction industry is facing an unprecedented crisis. According to the association’s chief executive in Queensland, Grant Galvin, there is a shortage of building projects planned beyond August. With this assistance, eligible applicants will have a $25,000 tax-free grant to help with building their new home or substantially renovating an existing one, which will help support the struggling construction industry.
After the announcement of this scheme, building companies across QLD immediately started seeing a boost in home construction projects as we enter the last few months of the year.
Who is Eligible for the HomeBuilder Grant?
If you had been planning on building your dream home or renovating your current one, you’re one step closer to being eligible for the grant. This also means you cannot use the grant for building or renovating an investment property. Owner-builders aren’t eligible either—you must hire a licensed contractor to build or renovate your home.
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 taxable income or later; or $200,000 per annum for a couple based on both 2018-19 taxable income or later.
- you entered 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 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 (pre-renovation);
- construction must commence on or after 4 June and within three months of the contract date.
The Benefit of a HomeBuilder Grant for First-Time Homeowners
While both first-time homeowners and those who have owned a property for a while are both eligible for the HomeBuilder grant, it is especially beneficial to the former. This is because first-time homeowners can combine the HomeBuilder grant with the $15,000 First Home Owners’ Grant and the $5,000 Regional Home Building Boost grant, bringing in a total of $45,000 to help build your new home.
Build Your Dream Home Today
Times are tough right now, which means it’s a good time to have a home where you can live in comfort. Let Maidment Group help. From finding a piece of land on which to build your house or financing your property, we’ve got you covered.
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