On Wednesday 3 June 2020, the Federal Government announced their intention to offer grants worth $25,000 for eligible Australian’s building or renovating their homes between June and December 2020. The stimulus aims to boost demand of construction, which has significantly decreased during COVID-19, and support workers such as builders, painters, plumbers, and electricians. Estimated to cost up to $688 million, the “HomeBuilder” scheme will help over 1 million jobs across the industry at a time when the economy and sector urgently need it.
As Australia faces its first recession in decades, the new stimulus aims to counteract economic downturn and ensure building projects are in the pipeline for the second half of the year. While the formal eligibility criteria has not been released, reports state that the stimulus will only be available for works undertaken which engage licensed contractors and is not available for investment properties or owner-builders. Grants are available for building contracts entered into before 31 December 2020 with construction commencing within 3 months of the contract date.
Who is eligible?
To be eligible for the grant you must be:
- An Australian citizen.
- Over 18 years old.
- Earn less than $125,000 a year based on a 2018/2019 tax return as an individual.
- Earn less than $200,000 as a couple.
What property is eligible?
Eligible property includes:
- New homes used as a principal place of residence which are valued up to $750,000 (including the land).
- Renovations to existing properties which are valued between $150,000 and $750,000, with properties worth less than $1.5 million before the renovation.
What are the exclusions?
The grants cannot be used for structures separate to the main property, including tennis courts, swimming pools, spas, saunas, sheds, or garages.
Renovations must “improve the accessibility, safety and liveability” of the property.
Who is considered a licensed contractor?
Contractors must have been licensed prior to the Government announcement for at least 6 months to be deemed eligible to undertake construction works.
Stay tuned for Revenue’s release of the scheme. If you’re looking to enter the property market, give the team at Cheney Suthers a call.
