What You Need to Know About the New HomeBuilder Grant

As part of the economic response to the COVID-19 pandemic, the federal government’s HomeBuilder program provides eligible owner-occupiers – including first home buyers – with a grant of $25,000 to build a new home or substantially renovate an existing home before the end of 2020. It can pay to check if you’re eligible and what you’ll need to do to apply if you are.

HomeBuilder is designed to complement existing state and territory first home owner grant programs, stamp duty concessions and other building schemes. The $688 million program has been set up to support a construction and building industry that has so far weathered the storm of the economic downturn caused by the pandemic – but is starting to show signs of a slowdown.

Who can apply for HomeBuilder?

Much like other economic stimulus packages, HomeBuilder comes with some specific rules around eligibility:

• To access the grant, applicants must be Australian citizens over the age of 18, who earned under $125,000 a year as an individual based on their 2018-19 or 2019-2020 taxable income, or a couple who earned less than $200,000 per annum based on their combined 2018-19 or 2019-20 taxable income.

• If building a new home as a principal place of residence, an individual or a couple must enter into a contract between June 4 and December 31, 2020, where the property value (house and land) does not exceed $750,000. 

• Or, they must enter into a contract between June 4 and December 31 to substantially renovate an existing home as a principal place of residence, where the work is valued between $150,000 and $750,000, and where the value of the existing property (the house and land, before renovation) does not exceed $1.5 million.

It’s important to note that owner-builders and those building or renovating rental properties are ineligible for HomeBuilder. In negotiating a building contract eligible for the grant, both parties must “deal with each other at arm’s length”. This means the property owner and the builder or renovator must be independent parties without any kind of “special relationship”, such as being related.

Renovations or building work must be undertaken by a registered or licenced building service ‘contractor’ (the exact definition of this will depend on the state or territory you live in), who is named as a builder on the building licence or permit.

“You will be able to apply for HomeBuilder through your relevant state or territory revenue office or equivalent authority – now that each state and territory has signed the National Partnership Agreement.”

If you’re applying for the grant to pay for renovations, those renos must be undertaken as to improve the accessibility, safety or liveability of the dwelling. The grant doesn’t cover standalone granny flats, swimming pools, tennis courts and structures that are not connected to the property (like outdoor spas and saunas, sheds or standalone garages).

Is everything proceeding according to plan?

The Commonwealth is pleased to announce that all states and territories are now signatories to the HomeBuilder National Partnership.

Treasury, the government department responsible for the new scheme, reported that it had received over 35,000 expressions of interest regarding applications at the end of June. The grant applications – and their management, assessment and potential approval – will be managed by state agencies.

• Australian Capital Territory

  Information on the application processes for those wishing to access the Commonwealth HomeBuilder grant is available through the Australian Capital Territory’s Revenue Office, the ACT Revenue Office. The ACT has a two-part application process.
  
  Applicants can now complete Part A by registering their interest for HomeBuilder. Applicants must lodge the Part A form by 31 December 2020 for their application to be considered. If you register your interest you will be advised of updates to application forms and supporting materials. Completing the registration form does not in any way constitute eligibility for the grant.
  
  A comprehensive application form will soon be available for applicants to complete Part B of their application. This form requires detailed information about the applicant, their builder, type of construction, as well as detailed supporting documentation.
  

• New South Wales

  Further information on eligibility and application processes for those wishing to access the Commonwealth HomeBuilder grant is available through the New South Wales Revenue Office, Revenue NSW. You can also contact Revenue NSW at Home.Builder@revenue.nsw.gov.au or call 1300 130 624.
  

• Northern Territory

  Further information on eligibility and application processes for those wishing to access the Commonwealth HomeBuilder grant will be made available shortly through the Northern Territory’s Revenue Office, Territory Revenue Office.
  

• Queensland
  The Queensland Office of State Revenue (OSR) is now accepting applications for the Commonwealth HomeBuilder grant. For further information on eligibility and the application process, please refer to theOSR website. You can also contact the OSR at HomeBuilderGrant@treasury.qld.gov.au or call 1300 300 734.
  
  It is expected that an online application will be available from 10 August 2020.
  

• South Australia

  The South Australian Revenue Office is now accepting applications for the Commonwealth HomeBuilder grant. For further information on eligibility and the application process, please refer to the HomeBuilder guidelines and application form available on the RevenueSA website.
  

• Tasmania
  The State Revenue Office of Tasmania is now accepting applications for the Tasmanian and Commonwealth HomeBuilder grants. For further information on the eligibility criteria, building and contract requirements and the application process for both grant programs, please refer to the HomeBuilder Grant Guidelines and the application form on the State Revenue Office of Tasmania website.
  

• Victoria
  Further information on eligibility and application processes for those wishing to access the Commonwealth HomeBuilder grant is available through the State Revenue Office Victoria. To register your interest in accessing the Commonwealth’s grant in Victoria, please sign up to the State Office Revenue Victoria email update service.
  

• Western Australia

  Revenue WA is now accepting applications for the Commonwealth HomeBuilder grant. For further information on eligibility and the application process please refer to the application form.

How do I apply?

You can apply for HomeBuilder through your relevant state or territory revenue office or equivalent authority.

States and territories will backdate acceptance of HomeBuilder applications to 4 June 2020.

You should contact your relevant state or territory revenue office for more information about when and how you will be able to apply for HomeBuilder.

If you have specific questions about your personal circumstances and the grant, click here to download the Department of Treasury Frequently Asked Questions document.

For links to the office you’ll need to apply through, click here to visit the HomeBuilder website – you can sign up to receive updates when new information is available, too.