The HomeBuilder scheme provides a tax-free grant to those building a new home or renovating.
The Assistant Treasurer recently announced an extension of the HomeBuilder scheme from 1 January 2021 to 31 March 2021.
For all new build contracts signed between 1 January 2021 and 31 March 2021:
- eligible owner-occupier purchasers will receive a $15,000 HomeBuilder Grant (down from $25,000); and
- the property price caps for new builds in New South Wales and Victoria will be increased to $950,000 and $850,000 respectively (from $750,000).
In addition, the construction commencement deadline will be extended from three months to six months for all eligible contracts signed on or after 4 June 2020 (applications for HomeBuilder can be submitted up to 14 April 2021).
There is also a change in the licensing requirements and registration for builders and developers:
- where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020
- where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020
Eligibility Criteria for HomeBuilder Grant
The eligibility criteria to access HomeBuilder remains the same.
The scheme is available to owner occupiers including first home buyers. It is not accessible to owner builders, developers or investors.
To be eligible you need to be:
- An individual (not a company or trust); and
- 18 years of age or older; and
- An Australian citizen.
And, you need to meet the income test. To be eligible, you cannot earn more than:
- Individuals– $125,000 based on your 2018-19 or later tax return
- Couples– $200,000 based on both of your 2018-19 or later tax returns
The grants are available if you build a new home where the value of the house and land does not exceed the threshold ($750,000 to $950,000 depending on when the contract was signed and the State you live in), or a renovation where the value of the property is $1.5m or less.
For full details visit: https://treasury.gov.au/coronavirus/homebuilder
How can Walsh Accountants help?
Once again, our team have mobilised to learn all there is to know about this grant so we can assist our clients should they be in a position to make an application for this grant.
For any businesses in the building and construction industry, this is a prime opportunity that managed effectively, will provide a great opportunity for an influx of work and growth for the business. As time to capitalise on this opportunity is limited, our Property and Construction team are here to assist any business to handle the flow on effect and cope with the extra demand this grant may bring.
For an obligation free discussion, contact us today.