To encourage renovations and new builds to commence after the lockdown, the federal government launched a $700 million home builder stimulus package. A lot of our new clients are asking us how this scheme works and how they can take advantage of it while it lasts.
Superdraft is here to guide you through the entire process – starting with design and council approval.
What is the HomeBuilder grant?
The HomeBuilder program will grant $25,000 to eligible Australian homeowners (tax-free) who want to renovate or build a new home in 2020. Recipients may combine this with existing and new state programs including the First Home Owner Grant.
Because of this, homeowners who are ready to take on a renovation or a new home building project in 2020 can save a substantial amount of money. Remembering the design and council approval process can take weeks so it’s best to start that process now.
Does my project qualify?
To be eligible for the $25,000 grant, you must meet the following criteria:
- sign a contract with a licensed or registered builder between 4th June 2020 and 31st December 2020.
- The construction must begin within three months of the contract date and must end by March 2021 (latest). So you need to get started on the design now.
- be a person — not a company or trust
- be 18 years old and above
- be an Australian citizen
- For an individual, earn less than $125,000 per annum based on your 2018-19 tax return or later
- For a couple, earn less than $200,000 per annum based on both 2018-19 tax returns or later.
- You build or new build project must be your principal place of interest and not an investment property
- For new homes, the property value must not exceed $750,000.
- For renovation, the contract value must be between $150,000 and $750,000, and where the value of your existing property must not exceed $1.5 million. The renovation must improve the accessibility, liveability, and safety of a property.
- Excluded from the scheme are the following projects: sheds, pools, granny flats, and any other structures that are detached to the main dwelling are not included.
How do I apply?
Contact Superdraft today and we can help guide you on the application process. First, you need to design your project and have the plans approved by the local council before you can receive a fixed price build contract. Knowing this process can take weeks or months, depending on the size of the project so it’s best to not delay or risk missing the deadline.
What documentation do I need to provide?
You must prepare the following documents:
- Council approval of your project (including designs, plans and documentation). Superdraft can provide this.
- A copy of the building contract, dated and signed by you and the nominated registered or licensed builder. Superdraft can source you multiple quotes from our network of reputable local builders
- A copy of the builder’s registration or license (depending on the state you live in).
- A copy of your 2018-19 tax return (or later) to demonstrate your eligibility against the income cap
- Documents such as council approvals, building contracts or occupation certificates and evidence of the land value
- Proof of identity
How do I receive the money?
Your State or Territory revenue office will distribute the $25,000 grant directly to your nominated bank account. For more information please click here.
Ready to renovate?
Thinking of building or renovating now? Superdraft can guide you throughout the entire design and build journey.