There was some exciting news for home owners yesterday with the Government’s announcement of a $25,000 grant towards substantial renovation projects. We’ve already had a lot of enquiries about this grant, so in this post we’ve outlined what we know so far.
The timeframes for this grant are very tight, so if you are thinking about renovating or extending, read on! If you prefer, you can watch Jeremy Gates’ Facebook Live video on the grant program by clicking here.
The grant program is called HomeBuilder and in a nutshell it is a time limited, tax free, uncapped, grant program. Under the program, eligible owner-occupiers will receive a grant of $25,000 when they build a new home or substantially renovate an existing home.
So, the $25,000 question, who is eligible for this grant?
The answer is: owner-occupiers who satisfy the following FOUR key criteria:
Firstly: Only people can apply (companies or trusts are not eligible) and you must be over 18 and an Australian citizen.
Secondly: You cannot have earned more than the INCOME CAP which is either:
- $125,000 dollars per annum for an individual applicant based on their 2018/19 tax return or later; OR
- $200,000 dollars per annum for a couple based on both 2018/19 tax returns or later.
Thirdly: You must satisfy all of the CONTRACT requirements. For renovations, these are:
- enter into a building contract between now and 31 December 2020 with a registered builder,
- the contract is to substantially renovate your home as a principal place of residence to improve the accessibility, liveability and safety of the property,
- the contract is for between $150,000 and $750,000 AND
- construction starts within 3 months of the contract date.
Lastly: The value of your existing house and land (pre-renovation) does not exceed $1.5 million.
There is more information on the eligibility criteria in the Treasury’s Fact Sheet and FAQs on the HomeBuilder programme – you can access them by clicking here.
If you meet all of the eligibility requirements, you will be able to apply for the grant through our State Revenue Office. You will need to wait though until the Victorian Government signs the National Partnership Agreement with the Federal Government. We’ll keep you updated on that.
We’ll also let you know when we have more detailed information about the application process, which is to be released in due course.
This is a great initiative to boost the residential building industry and help it lead Australia through this economic crisis, while at the same time helping home owners to bring their dream home to life. With record low interest rates, and the opportunity for a $25,000 Government grant, now’s the time to get started on that renovation that you have been dreaming about.
If you are looking to do a renovation or extension and you’d be eligible for the grant, time is of the essence. You only have until the end of the year to enter into a building contract. It usually takes between 4 and 6 months from starting the design process to finalising the construction documentation, getting a fixed price build quote and then signing the building contract (and that’s if you don’t need a planning permit).
So, if you haven’t started your design process already, you need to speak to a builder ASAP.
Give us a call on 9989 0799 and we can start the design process straight away.
For tips on saving time & money when designing your new home or renovation, read our FREE guide on the “7 Things You Must Know Before Designing a New Home“.
Download it now to ensure that you are on track for a stress-free building experience and a home that you love.