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Federal Government Announces $25,000 New Home Builders Grant

Like many industries, the property and home building sectors have been significantly impacted by the coronavirus pandemic. Social distancing rules and other restrictions have brought home building projects to a halt, and delayed many home building plans across the country.

On 4 June 2020, the federal government announced HomeBuilder, a new home builders grant scheme that will help the residential construction industry bounce back from the effects of the pandemic.

The scheme, which forms part of the government’s economic response to the coronavirus pandemic, will see an estimated $680 million distributed to eligible owner-occupiers across all Australian states and territories. Eligible recipients will receive a one-off $25,000 grant to put toward the cost of building a house in Australia or performing substantial renovations. 

Eligibility for the HomeBuilder scheme

To qualify for the HomeBuilder new home builders grant, applicants must be an owner-occupier (including first home buyers) entering a contract to build a new home or substantially renovate an existing one. The contract must be signed between 4 June 2020 and 31 December 2020, and construction must begin within 3 months of the contract date.

Additionally, owner-occupiers must:

  • Be a “natural person” (not a company or trust)
  • Be aged 18 years or over
  • Be an Australian citizen
  • Meet one of the following income caps:
    • $125,000 per annum for an individual applicant based on your 2018-19 tax return or later
    • $200,000 per annum for a couple based on both 2018-19 tax returns or later

Owner-occupiers must also be able to demonstrate that the property value of their new home does not exceed $750,000. In the case of substantial renovations, the existing property must not exceed $1.5 million in value and the renovation contract must be between $150,000 and $750,000.

Applying for a HomeBuilder grant

Applications for a HomeBuilder home builders grant in NSW are not yet open. Updates on the grant application process will be published on the Revenue NSW website as they become available. 

In the meantime, owner-occupiers who intend to apply for the grant are advised to prepare documentary evidence of their eligibility as outlined above.

Build your dream home with HomeBuilder 

Thanks to the HomeBuilder scheme, building a new house in NSW and other Australian states and territories is now more accessible than ever. For many, the scheme makes building, rather than buying, a new home a more financially viable option.

Planning to apply for the new home builders grant? Explore our home designs now, or find home renovation inspiration on our blog.