The Federal Government has unveiled its HomeBuilder package,home owners to apply for a tax-free grant of $25,000 if they are spending between $150,000 and $750,000 renovating a home or building a new home — but the eligibility criteria are reasonably tight.
HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date.
Are you eligible?
Here are few conditions you will need to meet to be eligible:
- You need to be an adult Australian citizen with a taxable income less than $125,000 a year. If you live with your partner, your combined income has to be less than $200,000 per year
- Before the end of the year, you need to enter a contract to renovate or build your main place of residence, with construction to begin within three months of the contract date (no investment properties)
- For renovations, you need to spend between $150,000 and $750,000 of your own money, and the house you're renovating must be valued at less than $1.5 million prior to renovations
- For new builds, the total value of the completed home needs to be less than $750,000, including land.
Should you meet the criteria, there is still a handful of requirements on the contract side. For instance, your contract needs to be negotiated at a fair market price, to prevent people from asking their builder for favour costs so you can access the grant.
Please call Sydney Conveyancing to assist you with your Contract on 02 6989 4656.