The HomeBuilder Grant has been extended to 31 March 2021. Along with that extension, a few changes to the program will come into play for building contracts signed between 1 January 2021 and 31 March 2021. HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant to build a new home or substantially renovate an existing home. HomeBuilder assists the residential construction sector by encouraging the commencement of new home builds and renovations.
Effective 23 November 2020, the Commissioner of State Taxation exercised her discretion to extend the construction commencement timeframe of the HomeBuilder programme by 3 months for all relevant applications. Then on 29 November, Prime Minister The Hon. Scott Morrison MP and the Assistant Treasurer and Minister for Housing and The Hon. Michael Sukkar MP announced the extension of the HomeBuilder program, stating that it will remain demand driven and will be extended from 1 January 2021 to 31 March 2021.
Changes to the HomeBuilder program include:
- A $15,000 grant for building contracts (non-taxable toward building a new home or a substantial renovation) signed between 1 January 2021 and 31 March 2021, inclusive.
- An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
- An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
- An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021, inclusive.
- The existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
- A change in licensing requirements and registration for builders and developers:
- Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
- Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.
What is provided?
🏠 $25,000 grant: non-taxable toward building a new home or a substantial renovation (Must have a contract to build, buy or renovate for owner occupation and this contract must be signed between 04-Jun-2020 and 31-Dec-2020)
🏠 $15,000 grant: for building contracts (non-taxable toward building a new home or a substantial renovation) signed between 1 January 2021 and 31 March 2021, inclusive.
Who can apply?
🏠 Available to eligible owner-occupiers (including first home buyers) who build a new home, substantially renovate an existing home, or buy an off the plan/new home.
🏠 Must have a contract to build, buy or renovate for owner occupation and this contract must be signed between 04-Jun-2020 and 31-Dec-2020 inclusive (for the $25,000 grant) and signed between 01-Jan-2021 and 31-Mar-2021, inclusive (for the $15,000 grant).
🏠 Construction must commence within 6 months of the date of the contract.
🏠 Construction is taken to have commenced when site works including excavation for the approved building works is complete.
🏠 Commencement must be supported by evidence such as a statutory declaration from the builder or a mandatory notification form which is used to notify local councils of stages of work.
🏠 Contracts must be arm’s length (no owner-builders).
🏠 If off plan/new home – needs to be a sales contract rather than a building contract.
🏠 Income limits: less than $125,000 single and $200,000 couple in either FY19 or FY20.⠀
🏠 A new build property price cap (House and land) $750,000 or less for SA, $950,000 for NSW and $850,000 for Victoria, (construction must commence within 6 months of the date of the contract) or substantial renovation between $150,000 and $750,000 (and value of existing house & hand does not exceed $1.5m).
For a summary of other grants and relief packages currently available in SA, read our previously posted summary here.
This summary is to be used as a guide only and is not legal or financial advice and must not be relied upon as such. It does not take into account the following grants, which are no longer available in SA: