New HomeBuilder stimulus package announced today
June 04, 2020
This morning, HIA Managing Director, Graham Wolfe, joined the Prime Minister, Treasurer and Housing Minister, to announce the new ‘HomeBuilder’ stimulus package.
The HomeBuilder grant is a $25,000 grant for owner occupiers who build new homes or carry out substantial renovation projects.
The grant reflects HIA’s call on the Government to provide support for the housing industry to limit the impact of COVID-19 and bring forward housing activity into the second half of 2020 to avoid a significant drop in housing starts and jobs.
The Government has relied on HIA’s housing forecasts and recognised our concerns about the likely decline in housing activity as a reason for making today’s announcement.
While the full details of the scheme are not yet available we can provide you with the following information.
Eligible Building Work
The incentive will be available to eligible owner occupiers for contracts entered into between 4 June (today) and 31 December 2020.
Building work must commence within 3 months of the contract being signed.
The maximum value of an eligible new home building contract is $750,000 including land – a matter that HIA is currently discussing with the federal government.
The value of a home renovation project must be over $150,000 and up to a maximum of $750,000. The existing home must have a pre-construction valuation that confirms the improved value of the property before work commences is less than $1.5 million.
Renovation projects must be connected to the use of the home as a principle place of residence, e.g. pools, sheds, garages, and the like are excluded.
Renovation projects will need to improve the accessibility, safety and liveability of the dwelling. At this stage, no more details are available on what this may mean.
The builder must demonstrate that the contract price for the new build or substantial renovation is equivalent to the cost of comparable building work on 1 July 2019.
Eligible Owner Occupiers
Eligible owner occupiers must meet the income thresholds that apply under the First Home Loan Deposit Scheme – being an income of up to $125,000 for singles and up to $200,000 for couples, along with the other requirements of the First Home Loan Deposit Scheme that apply to Australian citizens and age.
Owner builders will not be eligible for the incentive.
How will the grant be administered?
The grant will be administered by each State & Territory revenue offices. The grant will be paid directly to the owner-occupier by the office of revenue after the first progress payment.
The grant will complement the existing first home owner grant programs in each state and territory, along with any stamp duty concessions and other grant schemes that are made available to home owners. The grant will also be available to anyone accessing the First Home Loan Deposit Scheme for a new home.
More information will be available soon from Treasury Coronavirus Economic Response website.
Information about how home owners can apply for the grant will also be made available through the relevant State and Territory revenue offices websites.