Good news for homeowners. The Australian government has announced the Homebuilder grant extension to eligible home owners and first home buyers. However, this grant is at a reduced rate.
The original HomeBuilder Grant is due to expire at the end of the December 2020 but will now be extended to 31 March at the lower rate of $15,000.
This is terrific news for homeowners who are not able to get their new build or renovation plans and builder finalised in time for the original 31 December 2020 deadline. You now have until 31st March 2021 to lock in a builder and a contract to secure their grant.
If you want to know more about the original $25k Home Builder Grant, please read our news article here.
Let’s answer some of your questions regarding the HomeBuilder grant extension – to see if you meet the criteria for the grant.
What is the HomeBuilder grant extension?
For building contracts signed from 1st January to 31st March 2021, the HomeBuilder grant extension is a $15,000 one off payment. It is made to homeowners who are or will be undertaking a new home build or renovations to their existing home of which the total cost is over $150,000. There are certain criteria you must meet to be eligible for the grant.
Who is eligible for the government homebuilder grant extension?
To access the HomeBuilder grant extension, owner occupiers must meet the following eligibility criteria –
- you are a natural person (the property is not in the name of a company or trust);
- aged 18 years or older;
- an Australian citizen;
- you meet one of the following two income caps:
$125,000 per annum for an individual applicant based on your 2018‐19 taxable income or later; or
$200,000 per annum for a couple based on both 2018‐19 taxable income or later;
- you enter into a building contract between 1 January 2020 and 31 March 2021 to
- build a new home as a principal place of residence, where the property value does not exceed $950,000 in NSW, $$850,000 in Victoria and $750,000 in all other states and territories; or
- substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million (pre‐renovation);
- construction must commence within six months of the contract date.
How much is the home builder grant extension?
The HomeBuilder grant extension is a one-off payment of $15,000 to homeowners building a new home or renovating to the value of over $150,000.
When do I claim the Homebuilder grant extension?
To claim the grant, you must pay your licenced builder the first instalment for starting the building works by 31 March 2020. Then you can apply for the grant through your state or territory revenue office by the 14 April 2021.
What home renovations are included in the homebuilder grant?
Home renovations between the cost of $150,000 to $750,000, and that improve the accessibility, liveability and safety of the property.
What home renovations are NOT included in the homebuilder grant?
The building of a pool, tennis court or shed for the renovation contract will not be included in the renovation contract for eligibility purposes.
Does the grant apply to off-the-plan apartment or townhouses?
Yes, townhouses and off-the-plan apartments are eligible for HomeBuilder grant or the extension if you sign the contract to buy the off-the-plan dwelling before 31 March 2021. Your construction must commence no later than six months after the contract is signed.
Can I claim the grant as well as other government home grants like the First Time Home Owners (FHOG) grant?
Yes, the grant can be claimed in addition to the first homeowners grant in most states. You will need to check the revenue office in your state or territory for more details and eligibility.
Links to each of the revenue offices are provided below.
How can I get the $15k grant?
You apply for the Home Builder grant extension through your state or territory revenue office.
Links to each of the revenue offices are provided below.
Are permanent residents eligible to get the HomeBuilder grant extension?
No, permanent residents are unable to claim the HomeBuilder grant. The homeowner must be an Australian citizen.
I already own a block of land, but haven’t signed a contract to build a new home, can I still claim the $15k grant?
Yes, if you owned the land before 4 June 2020 and enter into a building contract before 31 March 2021 and commence construction within 6 months of signing the contract.
Who is not eligible for the HomeBuilders grant extension?
The grant is not available for investment properties or to owner-builders.
How do I apply for the home builders grant extension?
Your licenced builder will need to have started the building works or you have paid your home builder the first instalment for starting the building works by 31 March 2021. You can then apply to your state or territory revenue office to claim the $15,000 grant.
What are the steps to apply for the HomeBuilders grant extension?
After you are satisfied you meet the eligibility criteria for the HomeBuilders grant –
Here are the links to each state or territory’s revenue office for more information. We suggest you check this information, as each revenue office have differing conditions and criteria –
Northern Territory (please note this HomeBuilder grant is in addition to the 2019 BuildBonus)
Tasmania (Includes the Tasmanian HomeBuilder Grant for new homes and the Commonwealth HomeBuilder Grant)
We have signed up a number of Sydney homeowners who are claiming the HomeBuilder grant. The SBR Group team of Sydney builders for custom homes and renovations would be happy to have a chat to you about what you need to consider to be eligible for the HomeBuilder grant extension. Contact us here.