The lowdown on HOMEBUILDER grants in NSW
Every little helps
Every homebuilder whether they may be first-time home builders or seasoned veterans appreciates a bit of help from the state in terms of funding. The homebuilder’s grant is constructed to serve this purpose and provide accessibility to building your own home!
*Text are adapted from the Australian Government’s HomeBuilder Fact Sheet.
What is the HomeBuilder grant program?
Announced in June 2020, the HomeBuilder program is a state run program with the goal in mind of supporting homeowners and the building industry in australia.
How much is the HomeBuilder grant program for?
Building contracts that are created on 4 June 2020 until 31 December 2020 will be able to apply to receive funding for a $25,000 grant. Building contracts that are created from the 1st January 2021 until 31 March 2021 will be able to apply for a $15,000 grant.
How does it work?
A single payment may be requested by individuals or partners who are constructing or renovating their homes.
This initiative varies from current programs in that to be eligible, you don’t need to be a first home buyer. You are also entitled if you are a current owner-occupier and comply with the requirements.
Who is eligible?
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
• you are a natural person (not a company or trust);
• you are aged 18 years or older;
• you are 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 4 June 2020 and 31 December 2020 to either:
build a new home as a principal place of residence, where the property value does not exceed $750,000; 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 (house and land) does not exceed $1.5 million (pre-renovation);
• construction must commence on or after 4 June and within three months of the contract date.
First home buyers Emma and Liam decide to purchase a house and land package
Emma and Liam enter into a house and land contract for $550,000 on 25 September 2020. Emma and Liam’s bank applies on the couple’s behalf to the relevant State or Territory State or Territory to receive the HomeBuilder $25,000 grant. The State or Territory conducts the eligibility checks and reviews the couple’s documentation and confirms that both Emma and Liam are Australian citizens, over the age of 18, have a combined taxable income under $200,000 based on their 2018-19 tax return and the value of the contract is under the $750,000 contract price cap.
As the couple are both first home buyers, Emma and Liam may also be entitled to their State’s first home owner grant and stamp duty concessions as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
Owner-occupier Cassidy decides to substantially renovate her home
Cassidy enters into a contract on 31 December 2020 to substantially renovate her home, with renovations valued at $400,000. The value of her home is $900,000 (this includes the value of the house and the land). Cassidy pays the builder $150,000 of the cost of renovation of her home on 2 February 2021. Cassidy then applies directly to her State or Territory to receive the $25,000 HomeBuilder grant.
The State or Territory conducts the eligibility checks and confirms that Cassidy owns the property, is an Australian citizen, over the age of 18, and has a taxable income under $125,000 based on her 2019-20 tax return. The State or Territory also confirms the value of the renovations is between $150,000 and $750,000, and the value of her home (house and land) is less than $1.5 million pre-renovation, and Cassidy has made a payment of at least $150,000 for the renovations. The State or Territory approves the application.
As Cassidy already owns her own home, she is not eligible for the first home owner grant, the First Home Loan Deposit Scheme or the First Home Super Saver Scheme.
Owner occupiers Jacqui and Henry decide to knock down and rebuild their existing home
Jacqui and Henry enter into a building contract to knockdown and rebuild their existing home on 24 August 2020, with the knockdown and rebuild contract valued at $400,000. The value of the property is $800,000 (including the current value of the dwelling and land). Jacqui and Henry’s bank applies on the couple’s behalf to the relevant State or Territory State or Territory to receive the HomeBuilder $25,000 grant.
The State or Territory conducts the eligibility checks and confirms that the couple own the property, are Australian citizens, over the age of 18, have a combined taxable income under $200,000 based on their 2018-19 tax return, and the value of their existing home and land pre-renovation is less than $1.5 million. The building contract is also within the HomeBuilder renovations price range (between $150,000 and $750,000) and the couple have made payments of at least $150,000 for the contract price. The State or Territory approves the application.
As Jacqui and Henry already own their own home, they are not eligible for the first home owner grant, the First Home Loan Deposit Scheme or the First Home Super Saver Scheme.
How do i apply?
Information on the application processes for those wishing to access the Commonwealth HomeBuilder grant is available through the New South Wales Revenue Office.
Can I apply for the First Home Owners grant also?
In short yes although each has its own eligiblity categories so be sure to recreach the grant in question for more information.
Will I be eligible if my partner is not a citizen?
The grant may be approved if your partner is not a citizen but you will need to check with the state.
After signing can building be delayed until I’m ready?
You are given 6 months after approval to begin building your property.
What proof or documents will I need to provide when I apply?
The items below are what’s needed to begin you grant application:
- Proof of identity
- A copy of the contract dated and signed by the applicant and the nominated registered/licensed builder
- Builder’s registration & license.
- Documents such as council development approvals, building contracts, occupation certificates and evidence of land value
- 2018-2019 tax return or later to show your income eligibility (and your partner’s)