Are you looking to build a new home, or substantially renovate a home to live in in Queensland? With an extra $25,000 under the Federal Government’s new HomeBuilder scheme, your first dream home can become a reality sooner.
With HomeBuilder, you may be eligible for a $25,000 grant on top of existing government incentives to help you build your home and get onto the property ladder.
The scheme directly helps young families, first home buyers, upgraders and downsizers realise their goal of home ownership sooner.
Find out if you’re eligible
The $25,000 HomeBuilder grant is available to eligible owner-occupiers to build a new home or substantially renovate an existing home.
To be eligible, you must be named on the title of the property, and:
- be an individual (not a company or trust), be aged 18 years or older, and an Australian citizen,
- meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on 2018/19 tax return or later, or
- $200,000 per annum for a couple based on your combined on 2018/19 tax return or later, and
3. enter into a building contract between 4 June 2020 to 31 December 2020 to either:
- build a new home as a principal place of residence valued up to $750,000 (including land), or
- substantially renovate an existing home as your principal place of residence, with renovations valued at between $150,000 and $750,000 (GST inclusive) with the dwelling not valued at more than $1.5 million before the renovation.
What does HomeBuilder include?
HomeBuilder applies to all dwelling types. This includes a house, apartment, house and land package, off-the-plan, etc. Note, it does not include granny flats.
Also, you can still receive the Queensland First Home Owners’ Grant, $5,000 regional home building boost grant, stamp duty concession, First Home Loan Deposit Scheme and First Home Super Saver Scheme on top of HomeBuilder!
Renovations can be a combination of works, such as a kitchen and bathroom renovation; however, they must be under the supervision of a QBCC licenced builder.
What are the terms?
- Projects that have commenced or completed construction before the 4 June are not eligible.
- Owner-builders, builders’ own homes and investment properties are not eligible.
- In negotiating the contract, the parties must deal at arm’s length. The terms of the contract are not to be affected by a special relationship. The applicant must declare the contract was entered into “on an arm’s length basis” and be prepared to provide supporting evidence.
- A QBCC licensed builder must undertake the work.
- Renovation works must improve the accessibility, safety and liveability of the dwelling. This excludes granny flats, swimming pools, tennis courts, outdoor spas and saunas, and detached sheds, garages or primarily cosmetic in purpose, i.e. landscaping. Where both eligible and ineligible work is included in the contract, the government must be satisfied at least $150k worth of renovations is eligible.
- Construction can start before the contract is signed, but no later than three months after the contract date. This holds for both construction and sales (house/land or off the plan) contracts. There is some flexibility for unforeseen circumstances outside the control of the parties to the contract. Examples include: a delay in council approvals, inclement weather, or difficulties obtaining construction materials or sub-contractors.
- Owners cannot use the grant as a deposit and lenders may not consider it as a factor in determining eligibility. Any contract should not be contingent on the owner accessing grant.
- Individuals will receive the money directly, not the contractors or lenders. They will receive the money:
- after the first progress payment has been made on a new house,
- once $150k has been spent for a renovation, or
- after the applicant’s name is registered on the title for off-the-plan.
How to apply for HomeBuilder
If you’re looking to build or renovate your home in Queensland, you can apply for HomeBuilder through the Queensland Office of State Revenue (same as the First Home Owner Grant). Application acceptance will be backdated to 4 June 2020 and must be started by 31 December 2020.
Click here for more information.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.