Many Australian families were looking to buy their dream home in 2020, but amidst the COVID-19 pandemic, it has turned into a distant dream.
However, the government has announced a new initiative to assist Australians in purchasing or renovating their home, whilst boosting jobs within the construction industry.
The government has forecasted an investment of $688 million into the new Home Builders grant to assist Australians in purchasing their own homes.
The idea behind this is twofold and aims to increase traction in a market hit hard by the pandemic – the construction industry. The Home Builders grant is time-capped and it will be available as of 4th June 2020 to 31st December 2020.
How can you get a piece of the action?
The government has placed stringent requirements for obtaining the grant, but if you are eligible, you may claim $25,000 to go into your new home or home renovations. Here are the eligibility requirements:
Contract: enter into a building contract for renovations or building a new home between 4th June 2020 to 31st December 2020
Means Test: Individuals must earn less than $125,000 a year and Couples must earn less than $200,000 a year. This is assessed based on the 2018/2019 tax returns
Principal Place of Residence: renovations must be done on the principal place of residence and the homes to be built are for the purpose of being the individual’s primary place of residence.
Renovations:valued at $150,000 – $750,00 AND must improve the accessibility, safety and liveability of the dwelling. The total value of your house and land must not exceed $1.5 million.
Construction must commence within 3 months of the contract date
New Home: valued at less than $750,000
Licensed builder: engage a builder licenced prior to 4th June 2020 and cannot be an owner-builder
Must be an Australian citizen over 18 years old. A company will not be considered for this grant.
Documents required:
The documents required for an application include:
Proof of identity
Copy of the contract, dated and signed by you and the licensed builder
Copy of the builder’s registration or licence
Copy of your 2018/2019 tax return (or later)
Documents such as council approvals, building contracts, or occupation certificates and evidence of land value
Lastly, if you are eligible for other grants such as the First Home Buyers grant, First Home Loan Deposit scheme or the First Home Owner Super Saver scheme, you may also be able to obtain that in conjunction with the Home Builders grant.
If you are considering purchasing your own home or finally starting those dream house renovations, now might be a perfect opportunity to bite the bullet!
The above information is intended as general information and is not intended to be relied on as legal advice. If you want to assess your eligibility for the Home Builders grant or are looking at purchasing your dream home, call one of our experienced lawyers now on (02) 9920 1787 to find out how we can assist you.
Pannu Lawyers are highly experienced in conveyancing matters as well as assessing your eligibility and obtaining grants to improve or purchase your dream home.
