The State Government has recently announced a once-off grant known as the ‘Homebuilder Grant’. The Grant is for 25K and is available for owner-occupiers of new homes and substantial renovations to existing homes. We have set out the eligibility requirements below for your convenience.
- Applications must be lodged by no later than 31 December 2020.
- Applications can only be lodged after a HomeBuilder Contract has been signed.
- The HomeBuilder Contract must be signed between 4 June 2020 and 31 December 2020.
- Multi-step process whereby additional supporting documentation can be submitted after construction commences.
- Grant of $25,000.00 to eligible owner occupiers (including first home buyers).
- Natural person.
- Aged over 18 years at the date of the HomeBuilder Contract.
- An Australian citizen at the date of the application.
Types of HomeBuilder Contracts
- Contracts to build: you must be registered on Title as the owner of the land by no later than the laying of foundations and the first progress payment. The property value (house and land) must not exceed $750,000 (inclusive of GST).
- Contracts for substantial renovations: you must be registered on Title as the owner of the land at the time that you enter into the contract for renovation works. The contract for renovation works must be between $150,000 to $750,000 (inclusive of GST and the value of the land and existing dwelling must not exceed $1.5 million. A substantial renovation can either be substantially altering the existing dwelling or demolishing your home and building a new home on the land. A substantial renovation will generally not include stand-alone granny flats, swimming pools, tennis courts and structures not connected to the building such as outdoor spas, saunas, sheds or stand-alone garages. Likewise, renovations that are primarily cosmetic in purpose such as landscaping, painting or re-carpeting will not be considered a substantial renovation.
- Contracts for off-the-plan: you must be registered on Title as owner of the land when the building is completed and you are entitled to take possession of the home and as your principal place of residence. The contract price must not exceed $750,000 (including GST) and construction must not have commenced prior to 4 June 2020. You must be registered on Title as the owner of the property by no later than 31 October 2022.
- For individual applicants: you must not have taxable income (as shown on your notice of assessment issued by the Australian Taxation Office) in excess of $125,000 per annum for the 2018-19 or 2019-20 income tax year.
- For joint applicants: you must not have taxable income (as shown on your notice of assessment issued by the Australian Taxation Office) in excess of $200,000 per annum for the 2018-19 or 2019-20 income tax year.
- Located in Victoria.
- Fixed to your land.
- Suitable as a principal place of residence.
- Owned by you or, will be owned by you (both the dwelling and the land).
- Must not have commenced before 4 June 2020.
- Must be undertaken by a registered or licensed builder, at arm's length.
- Registered builder must have held licence prior to 4 June 2020.
- Owner-builders are not
- Construction must have commenced within 6 months of HomeBuilder Contract.
When does construction commence?
- For new builds, commencement of construction means the commencement of excavation and site preparation works.
- For substantial renovations, commencement of construction is when the works under the renovation contract commence.
- For an off-the-plan build, commencement of construction means the commencement of excavation and site preparation works.
When will you receive your HomeBuilder payment?
- For new builds, when foundations have been laid and the first progress payment has been made to the builder.
- For substantial renovations, after construction has commenced and evidence is submitted showing payments of at least $150,000 of the contract price have been made to the builder.
- For an off-the-plan build, after evidence is submitted showing that the property has been registered in your name on Title.
- The property must be your principal place of residence for a minimum of six (6) months.
- The occupation of the property as your principal place of residence must commence immediately upon completion of construction, renovation or settlement.
How can Burke & Associates Lawyers assist?
The property team at Burke & Associates Lawyers are well-versed in dealing with the State Revenue Office of Victoria.
We can assist in the following ways:
- Advising you on whether you meet the eligibility criteria;
- Advising you on the supporting documentation you require to submit with the application based on the type of HomeBuilder Contract you have or anticipate entering into
- Assist in your submission of the application.
- Answer any queries you may have about the application and process.