WEALTH HUB JOURNAL

All About the Federal Government’s HomeBuilder Grant

Australia is in what may be its worst economic recession of the past 90 years. The federal government is looking for ways to stimulate the economy to keep matters from getting any worse.

In late May, the government introduced the HomeBuilder grant, designed to stimulate the construction industry, which accounts for roughly 10% of the Australian workforce. The construction sector is a significant contributor to the economy and one of the hardest-hit industries by COVID-19.

The HomeBuilder grant, in the words of the Australian Government Treasury, “provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.”

There is a wide range of opinions on the grant. Some have expressed concern that the grant won’t be sufficient to stimulate the entire construction sector, while others have criticized the grant’s failure to provide for those in need of housing. Still, others believe in the grant’s efficacy, as it will support over a million construction workers over the next nine months.

Before you form an opinion, let’s go over everything you need to know about the federal government’s new HomeBuilder grant.

What is the HomeBuilder grant?

Designed to help the economy bounce back after the coronavirus’s damage, the HomeBuilder grant is a limited-time grant program providing eligible individuals with $25,000 to construct a new home or renovate an existing home. If you’re eligible for this program, you have until the end of the year to sign a contract and get started.

It comes with a few caveats. If you build a new home, it cannot be worth more than $750,000, including property. If you make renovations on an existing home, the house cannot be worth more than $750,000 (or under $150,000).

Who is eligible?

Are you interested in taking advantage of the HomeBuilder grant? It’s important to note that not everyone is eligible. Here are the requirements for eligibility, from the Australian Government:

• You must be a natural person (not a company or trust)
• You must be aged 18 years or older
• You must be an Australian citizen
• You must make at least $125,000 per year as an individual (based on your 2018-2019 taxes) or $200,000 per year for a couple
• You must sign a building contract between now and the end of the year to either build a new principal place of residence where the property value does not exceed $750,000 or renovate an existing place of residence for between $150,000 and $750,000. The value of your existing property cannot exceed $1.5 million.
• Construction must begin within 3 months of the contract date.

Where is it available?

Are you eligible and interested? As of now, the HomeBuilder grant isn’t available everywhere. Find your location below for more information.

Tasmania

Check the Tasmanian State Revenue Office for updates on eligibility and application information. To stay updated, sign up for the State Revenue Office email list.

South Australia

Check the RevenueSA page for updates on eligibility and application information. To stay updated, sign up for the RevenueSA email list.

Northern Territory

Check the Northern Territory’s Revenue Office page for more information on eligibility and application information.

Register here to receive updates on when the grant will become available in your area.

Find answers to frequently asked questions about the HomeBuilder grant here.

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