Part of the government’s response to the economic downturn caused by Covid-19 has been to encourage spending in certain sectors. The building industry have been given a lifeline via the Homebuilder scheme, which encourages eligible home owners to renovate their existing home, buy a new home off the plan or build a new home.
The scheme was to finish at the end of 2020, but has now been extended to 31 March 2021 with an amended grant amount and conditions.
The grant you will receive depends on when you entered into your building Contract and applications must be submitted by 14 April 2021. First Home Buyers are also eligible for this grant. Construction must begin within 6 months from the date of the building Contract and you will need to live in the property for at least 6 months after completion.
$25,000 Grant – For building contracts entered into between 04/06/20 and 31/12/20. The value of the house and land must be under $750,000 if you are building. For renovations your contract must be between $150,000 and $750,000 and the value of the existing house and land must be under $1.5 million.
$15,000 Grant – For building contracts entered into between 01/01/21 and 31/03/21. The value of the house and land must be under $950,000 if you are building. For renovations your building contract needs to be between $150,000 and $750,000 and the value of the existing house and land must be under $1.5 million.
To get the grant you must be an Australian citizen, over 18 and earn less than $125,000 p/a as an individual and $200,000 p/a as a couple. Permanent residents and visa holders are not eligible.
For new builds, the Grant will be paid once the foundations are laid and the first progress payment has been made. For renovations, it will be paid once payments over $150,000 have been made to the builder.
Still confused about whether you are eligible for these grants? Contact the Property Law Team at Everingham Solomons because Helping You is Our Business.
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