What is the HomeBuilder grant and what does it mean for you?
The HomeBuilder industry in Australia has been struggling because of the impact of the COVID-19 pandemic and the outlook is grim for the remainder of 2020.
The economic downturn that has come means the number of building projects that were planned for 2020 could fall by as much as 40% according to the Master Builders Association. This could put hundreds of thousands of people out of work.
In light of the struggle, the Australian Government unveiled a stimulus package to assist builders, tradies, construction companies and developers…
The HomeBuilder Grant.
HomeBuilder offers owner/occupiers, including first home buyers, a special grant of $25,000 to build a new home or substantially upgrade where they are now living.
This is a special tax-free grant program.
The scheme's primary goal is to supply work for the residential construction sector, but some people planning a home building or renovation project are set to benefit as well.
The government has pledged a total of $680 million towards the grant, which will benefit eligible home buyers and owner-occupiers.
It’s hoped it will provide a “tradie-led” recovery for the economy.
Who is eligible for the HomeBuilder Grant?
For starters, to be eligible for the grant, it needs to be more than just a cosmetic $25,000 kitchen reno. (Opposition Leader, Anthony Albanese suggested that to meet the criteria, a bathroom renovation would require a "gold bath and pearl taps"). The range of projects that would have you qualify to include:
- Buying an apartment off-the-plan for up to $750,000
- New builds with the total value of the completed home being less than $750,000, including the land
- Spending between $150,000 to $750,000 to renovate an existing home which has a property value of no more than $1.5 million
The Government is expecting about 27,000 homeowners or builders to access the scheme, but the number is uncapped, so there is currently no limit to the number of people who can take advantage of the offer. The grant is however for a limited time, ending December 31, 2020.
Other eligibility criteria include:
- Renovations only for your main place of residence, no investment properties
- Renovations need to improve the accessibility, safety or liveability of the home and don't include external work like swimming pools, tennis courts and sheds
- There is an income cap of $125,000 for singles and $200,000 for couples
- Both first or subsequent homebuyers may qualify
- Must enter a contract to renovate or build your main place of residence before Dec 31, 2020
- The contract needs to be negotiated at a fair market price
- Construction to begin within three months of the contract date
- Owner/occupiers cannot build or renovate on their own
- Applicant must not be a company or a trust
- Must use a registered or licensed builder (Check the individual requirements for your State or Territory)
- Recipient of grant can’t be related to or have any relationship with the builders/contractors
- Recipient of the grant must be an adult Australian citizen
For more eligibility criteria click on the link HomeBuilder Frequently Asked Questions
Beware of some traps
The grants are only for a short period of time so it’s vital that those who access the scheme don’t rush into projects.
Cameron Kusher from realestate.com.au is quoted as saying that the successful applicants need to “take their time to research builders and ensure they are using reputable builders/developers in order to ensure they are protecting their investment.”
Avoid being taken advantage of. Check that the cost of the project hasn’t been inflated because of this grant.
Ask the contractors to provide a comparable costing for the same job in 2019.
Get several quotes to keep them honest.
How can I apply?
You can apply directly to your state or territory's revenue office for the new grant. Or go online to https://treasury.gov.au/coronavirus/homebuilder
The Government says the states and territories will wear the cost of administering the program through existing systems, and the package can be paired with other benefits offered at the state and territory level.
Where can I go to find more information about ‘What is the HomeBuilder grant’?
For more detailed official information and other frequently asked questions about the HomeBuilder Grant click on the link HomeBuilder Frequently Asked Questions
This is where you can make a difference to your new home or your existing one.
If you are looking to build, then now is a great time. If you’re thinking of renovating, you couldn’t pick a better moment.
The Home Builder grant is a great chance to enhance your home. You can rework your kitchen and bathroom for a fabulous new look for the new year. All you need are the right products.
Where do you find the perfect items for a renovation project?
The answer is right in front of your nose.
The Bathware Direct Difference
To make the most of your renovation or new build, include Bathware Direct. We’ve got everything you will need for a beautiful, contemporary home.
With Bathware Direct you get quality in everything from bathware to laundry and kitchenware. Whether it’s the best in heating, hot water storage, toilets, bidets, vanities and storage, showers, baths, basins, tapware and accessories, everything you need for your new luxurious home is waiting.
Add to this the best in customer service and delivery Australia wide and you're miles ahead with Bathware Direct.
Shop online anytime you want – 24/7 on our website.
The only name you need to know for the best quality products at the best prices is Bathware Direct.