The recent announcement from Scott Morrison promoted a new home builders scheme aimed at keeping the building and construction industries strong. Here is your breakdown on what this means and who can benefit from this offering.
HomeBuilder Scheme Summary:
- One-off, tax free payment of $25,000 to property owners who meet eligibility criteria.
- Must be used to build a brand-new home or substantially renovate an existing home.
- Only owner-occupier, principal place of residence properties only, (investment properties excluded).
- Income is means-tested – up to $125,000 for individuals or $200,000 for couples combined (you’ll need to submit your 2018 / 19 tax returns to qualify).
- New builds must not exceed $750,000 in value (inclusive of the land value) and must be your principal place of residence (not an investment property).
- Renovations – work must have a contract value of $150,000 to $750,000.
- The only renovations applicable must be works that improve accessibility, safety & liveability of your residence (e.g. no swimming pools, sheds, tennis courts, etc.).
- A knock-down/rebuild qualifies as a substantial renovation, therefore, is eligible.
- Renovations must commission a licenced builder only (excludes owner builders, DIY’ers & builders who aren’t a family member).
- A building contract must be signed from 4th June to 31 December 2020 & the work must commence within 3 months of your contract being signed.
- For renovation works, your property cannot exceed $1.5 million in value.
- Applications for the grant will be handled via the State or Territory revenue office in which you live.
- You will be required to provide a copy of your building contract & other property documents such as your planning approvals to get the grant.
If you require any further discussions around this please do not hesitate to call our office.