Federal Government HomeBuilder Scheme

Will you be better off?

Federal Government HomeBuilder Scheme

The Federal Government HomeBuilder scheme provides eligible owner-occupiers, including first home buyers, with a revised grant of $15,000 to build a new home or substantially renovate an existing home where the contract is signed between revised dates of 1 January 2021 and 31 March 2021.   Construction must commence within 6 months of the contract date.

HomeBuilder will complement existing NSW First Home Owner Grant programs, stamp duty concessions, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

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 p.a. for an individual applicant based on your 2018-19 tax return or later; or
$200,000 p.a. for a couple based on both 2018-19 tax returns or later;

• you enter into a building contract between revised dates of 1 January 2021 and 31 March 2021 to either:

build a new home as a principal place of residence, where the property value does not exceed a revised $950,000; or

substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $950,000, and where the value of your existing property does not exceed $1.5 million;

• construction must commence within 6 months of the contract date.

Owner-builders and those seeking to build a new home or renovate an existing home as an investment property are ineligible for HomeBuilder.  Renovations or building work must be undertaken by a registered or licenced building service ‘contractor’.  The renovation works must be to improve the accessibility, safety and liveability of the dwelling.  It cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).

Example of a first home buyer purchasing an off-plan apartment

Julie is a first home buyer who enters into a contract to purchase an off-the-plan apartment valued at $550,000 on 6 February 2021.  As Julie’s mortgage broker, we apply on her behalf to the State revenue office to receive the HomeBuilder $15,000 grant.   Being a first home buyer, Julie may also be entitled to the First Home Owner Grant and stamp duty concessions as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

Example of owner-occupiers deciding to substantially renovate their home

Michael & Jenny enter into a contract to substantially renovate their home on 31 January 2021, with renovations valued at $400,000.  The value of her home is $900,000 (this includes the value of the house and the land). They pay the builder $10,000 to commence the renovation of their home on 2 March 2021.  As Michael & Jenny’s mortgage broker, we apply directly to the State revenue office to receive the $15,000 HomeBuilder grant.

As Michael & Jenny already own their own home, they are not eligible for the First Home Owner Grant, the First Home Loan Deposit Scheme, or the First Home Super Saver Scheme.