A renovation rescue for the economy has been announced with $25,000 cash grants for new homes and renos.
The Australian government's HomeBuilder stimulus scheme is not just about helping Aussies create their dream home, but supporting thousands of the country's builders and tradies.
Not everyone can benefit from this cash bonanza so before you start drawing up plans, check first if you are eligible.
Firstly, it's means-tested, so this will exclude anyone earning over $125,000 a year (or $200,000 for couples).
It's also not for small projects. If you're considering doing up your spare bedroom with a coat of paint, this one's not for you.
And if you're dreaming of a pool or an outdoor spa, you're also out of luck.
Are you eligible for the HomeBuilder grant?
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 tax return or later;
- $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- You enter into a building contract between June 4, 2020 and December 31, 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 does not exceed $1.5 million;
- Construction must commence within three months of the contract date.
What can you spend it on?
- Build a new home as a principal place of residence valued at up to $750,000 (including land); or
- Substantially renovate an existing home as a principal place of residence, with renovations valued at between $150,000 - $750,000 - the property can't be valued at more than $1.5 million before the renovation.
- Renovation must improve the accessibility, safety and liveability of your home.
- Cannot build unconnected additions to the property such as pools, tennis courts, outdoor spas and saunas, sheds or garages.
The scheme has come as a massive relief to the thousands of home builders and tradies around the country according to Master Builders Australia.
"HomeBuilder will be a lifeline for an industry facing a valley of death in the coming months." Denita Wawn, CEO of Master Builders Australia said.
"It will mean more new homes, more small businesses and jobs are protected and provide a stronger bridge to economic recovery for our country.
"Based on the Government's estimated 27,000 grants, we think the scheme will be used for $10 billion in building activity, supporting the viability of 368,000 small builders and tradies - the businesses which employ 800,000 people around Australia.
"Supporting the home building industry is essential to strengthening the economy and helping Australia recover from the impacts of the pandemic.
"Residential building activity gives back more than double to the communities that sustain it with every $1 invested in home building activity providing $3 to the wider economy," Denita Wawn said.
"This means that HomeBuilder will provide a boost for thousands of tradies; the cafes, pubs, and ute dealerships that they frequent; as well as the thousands of building supply businesses that depend on the industry," she said.
"The scheme is well targeted and should maximise the number of builders, tradies, workers, apprentices and households that will benefit," Denita Wawn said.
For more visit treasury.gov.au.