Home Builder Grant: How you can Access the New Government Building Scheme
The administration has declared grants of $25,000 to motivate people to construct a new house or considerably renovate their homes in which they are already residing.
This scheme HomeBuilder focuses on the residential construction market by giving tax-free grants of approximately $25,000.
The grants shall be dispensed by the revenue office of the territory or state where you plan to reside or you already reside. However, there are such complications to this grant that both renovators and the building industry require to be across before signing a new contract on the basis of the expectation that the grants shall apply.
Eligibility for Home Builder Grant
The criteria of eligibility are applicable for the grants and the building project.
This scheme of HomeBuilder can be availed by owner-occupiers that also include first home buyers. It is neither accessible to developers and investors or builders. The eligibility for this involves:
• Only individual not a trust or a company
• Minimum of 18 years of age
• An Australian Citizenship
One is also required to meet the income test. Being eligible, one cannot earn more than:
• In case of individuals: Based on your tax return 2018-19 or later, $125,000.
• In the case of couples: Based on both tax returns or later, $200,000.
Eligibility for Building Project
The building contract should get signed from June 4, 2020, to December 31, 2020. Moreover, the construction and the renovation should initiate in three months of the date of the contract. The grants shall be only available if you renovate or build a new home to live in or can say the principal place of residing, in this:
FOR NEW HOME
• The value of the property should not exceed $750,000
RENOVATION
• The contract of renovation is between $150,000 to $750,000
• The value of the existing property either land or house should not exceed $1.5 million
If you have purchased or your own land but still not have signed a contract to construct your house, you might meet the eligibility criteria if you:
• Are an owner of the property either land or house, and you knock down the home to rebuild it – This shall be a substantial renovation, hence, subject to price range between $150,000 and $750,000 for the price range of renovation, the condition here is that the total value of the property should not be more than $1.5 million for each renovation.
• Have a vacant land before June 4, 2020, and build the aggregate value land new build must not be more than $750,000
• Purchase the land after June 4, 2020, and the construct that, the value of the land must not be more than $750,000.
Pricing and Integrity Measures
The renovation of the building work should be handled by a licensed building service contractor. However, it all depends upon the territory or the state where you reside and are named as a builder on the permit or the license.
When it is about price, the terms should be reasonable and the price of the contract must not be more as in comparison with the fair market price.
The regulations allow the buyer to request that the builder show the contract price for new construction or renovation is not a comparable item as on July 1, 2019.
Interconnection with First Home Owner Grant Scheme
The HomeBuilder grant includes first home buyers from accessing some other grants like stamp duty concessions, First Home Owner Grant, First Home Super Saver scheme, First Home Loan Deposit Scheme.
Problematic Areas
Before the approval of the grant, the building contract is entered. It will be crucial that the grant is not vital to finance the project of building, in case the grant is unapproved. Furthermore, since the builder id required to work in the three months of the date of the contract, it is significant to assure that the contract takes care of the dates of starting off.
Types Of Homes Which are Eligible
For this scheme, all dwelling types are eligible, this also includes land and house packages, apartments, off-the-plan purchases, the condition is that the owner is building a new house or renovating an existing house. Furthermore, the applicants should meet the income eligibility test.
How May I Know The Status Of Success Of My Application?
The associated territory or state notifies you regarding the outcome of your application.
Can I Appeal If My Application Is Unsuccessful?
Definitely, if you are dissatisfied with the outcome of your application, you can request the matter to the state dispute resolution body.
Is It your Location Which Decides that How much benefit you will Get?
In general, all the states avail the same benefits. You can glance at the following states:
New South Whales
State First Homeowner Grant – $10,000
Scheme for Commonwealth first Home Loan Deposit – Up to $ 10,000
How much can I avail with HomeBuilder? – up to $45,000
Victoria
State First Homeowner Grant – $10,000-$20,000
Scheme for Commonwealth first Home Loan Deposit- Up to $10,000
How much can I avail with HomeBuilder? – Between $45,000-$55,000.
Queensland
State First Homeowner Grant – $15,000
Scheme for Commonwealth first Home Loan Deposit – Up to $10,000
How much can I avail with HomeBuilder? – Up to $50,000
South Australia
State First Homeowner Grant – $15,000
Scheme for Commonwealth first Home Loan Deposit- Up to $10,000
How much can I avail with HomeBuilder? – Up to $50,000
Tasmania
State First Homeowner Grant – up to $20,000
Scheme for Commonwealth first Home Loan Deposit- up to $10,000
How much can I avail with HomeBuilder? – up to $55,000
Western Australia
State First Homeowner Grant – $10,000
Scheme for Commonwealth first Home Loan Deposit- up to $10,000
How much can I avail with HomeBuilder? – up to $45,000.
Australian Capital Territory
Scheme for Commonwealth first Home Loan Deposit – up to $10,000
How much can I avail with HomeBuilder? – up to $35,000
Northern Territory
State First Homeowner Grant – $10,000
Scheme for Commonwealth first Home Loan Deposit- up to $10,000
How much can I avail with HomeBuilder? – $45,000
How Can Reliable Melbourne Accountants Help You?
Our team of professionals has grasped all the information related to this grant so that we can assist our clients in the best way. Since the time to capitalize on this is for a limited time, our team of accountants in Melbourne is here to support your business to manage the flow-on effect and tackle the demand that this grant can bring.