Written by Nicola Brazier of YBM
The HomeBuilder Grant was introduced in June as a measure to support the Construction industry by providing eligible owner-occupiers with $25,000 grants to build or substantially renovate.
Since the schemes inception there has been 24,000 building applications representing a 20% increase to dwelling approvals, and an expected 15,000 further approvals under this extension.
An encouraging sign that this stimulus measure is a real success story.
This extension does, however come with a few changes. These changes include:
| HomeBuilder program criteria | Contracts signed between 4 June and 31 December 2020 (inclusive) | Contracts signed between 1 January and 31 March 2021 (inclusive) |
|---|---|---|
| Grant amount (new builds and substantial renovations) | $25,000 | $15,000 |
| New build price cap | Property value cannot exceed $750,000 | Property value cannot exceed:$950,000 in NSW;$850,000 in Victoria; or$750,000 in all other States and Territories. |
Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.
| Other eligibility criteria | Existing program eligibility criteria remains. |
| Substantial renovation price cap | The value of the property cannot exceed $1.5 million (pre renovation). |
| Application deadline | Applications must be submitted to the relevant State Revenue Office by 14 April 2021. |
| Licensing requirements for builders/developers | * Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020. * Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020. A valid copy of the builder’s licence or registration must be provided as part of the supporting documentation when applying for the grant. * Cannot apply to owner-builders; Must deal with parties at arm’s length and at commercial rates. |
| Construction commencement timeframe | * Construction must commence within six months of the contract being signed. This is a change from the original 3 month timeframe and is backdated and applies to all contracts entered into on or after 4 June 2020. |
| Eligible applicants | * Must be Australian citizens, aged 18 years or older at the date of the contract, and must be a person (not a company or trust). * Must be registered on the title as owners of the property or land where the building or renovation is occurring. * Must earn less than $125,000 per annum as an individual or less than $200,000 per annum as a couple. * Must not have previously received the HomeBuilder Grant for any property owned individually or jointly with another person in any Australian state or territory. |
| Eligible homes: | * Must be lived in by the applicant as their principal place of residence and exclude investment properties; * Must be ‘fixed’ to your land. |
The Revenue NSW website contains detailed information as to eligibility, as well as the application link. There is also a link for the ‘application form and lodgement guide’ where you can check what supporting documentation is also required. This is a great place to start.
https://www.revenue.nsw.gov.au/
Remember, you must have entered into an eligible contract before completing the application.
If you have any questions, or would like assistance with the application, please don’t hesitate to contact us.
| Orange 02 6362 1533 Email us | Molong 02 6366 8049 Email us |
Yates Baker McLean. Accountants and Business Advisors situated in the Central West of NSW.
Offering comprehensive advice for all your financial needs including tax, auditing, business advisory, self managed super funds, specialised industry experience and financial planning.