HomeBuilder Grant Extension
Program now extended till end March 2021
On 29 November 2020, the Federal Government announced an extension to the HomeBuilder program to end of March 2021, but at a lower rate. The program, which provided eligible new home or renovation builds with a $25,000 grant was due to expire at the end of December 2020. From the new year till the end of March, the Grant will still be available for contracts signed between this period, but at a lower rate of $15,000.
Another critical update to the program is that applicants will be given more time to commence construction and price caps in NSW and VIC will be increased from $750,000 to $950,000 and $850,000, respectively.
As of 20 November, the Government received an impressive total of 23,877 applications for this HomeBuilder program and this extension will help to keep the momentum up for the building industry to support Australia’s economic recovery.
SUMMARY OF CHANGES
| HomeBuilder program criteria | Contracts signed between 4 June and 31 December 2020 (inclusive) | Contracts signed between 1 January and 31 March 2021 (inclusive) |
|---|---|---|
| Grant amount (new builds and substantial renovations) | $25,000 | $15,000 |
| Construction commencement timeframe | Construction must commence within six months of the contract being signed. | |
| New build price cap | Property value cannot exceed $750,000 | Property value cannot exceed: • $950,000 in NSW; • $850,000 in Victoria; or • $750,000 in all other States and Territories. |
| Substantial renovation price cap | The value of the property cannot exceed $1.5 million (pre renovation). | |
| Application deadline | Applications must be submitted to the relevant State Revenue Office by 14 April 2021. | |
| Licensing requirements for builders/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 eligibility criteria | Existing program eligibility criteria remains. | |
To read our post regarding the original HomeBuilder Grant, click here: https://www.factor1.com.au/20200610-homebuilder-grant/
For more information, click here: https://treasury.gov.au/coronavirus/homebuilder
Posted: 2 December 2020