How the new $25,000 HomeBuilder grant works
29 July 2020
What’s not to love about free money? Especially when it can help you build a dream home.
ME Bank answers six key questions to help you know what’s involved with the new HomeBuilder grant.
1. What’s it about?
The HomeBuilder scheme pays a $25,000 cash grant if you plan to build a new home where the property value does not exceed $750,000.
The grant is also available if you’re planning renovations. The value of your property (home and land combined) can’t exceed $1.5 million before renovations. You need to spend between $150,000 and $750,000 on the improvements – so we’re talking about a major project.
2. Who can apply?
To access HomeBuilder, you need to meet three conditions:
- Be aged 18 years or older;
- Be an Australian citizen;
- Earn annual income up to $125,000 annually as a single, or up to $200,000 combined as a couple (based on 2018-19 taxable income or later).
3. Do time limits apply?
You need to sign a building contract for either a new home construction or renovation works by 31 December 2020. Construction must start within three months of the contract date.
4. Can I do the renos myself?
Renovations or building work must be undertaken by a registered or licensed tradie.
5. I’m a first home buyer – can I still access other support?
HomeBuilder works in tandem with other first homeowner programs. So, you can still access the scheme without missing out on the First Homeowner Grant or stamp duty concessions you may be eligible for, as well as the First Home Loan Deposit Scheme.
6. How do I apply?
The HomeBuilder grant is administered by state/territory governments. Because it’s so new, chances are that you won’t see the grant mentioned on the website of your State/Territory Revenue Office. Simple solution: Pick up the phone and give your state’s revenue office a call to get started with your application.
HomeBuilder fact sheet
To find out more, see the Government’s HomeBuilder fact sheet.
This article is brought to you by ME. For more information, please visit www.mebank.com.au. Members Equity Bank Limited ABN 56 070 887 679 and Australian Credit Licence 229500.
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