You may have heard that the federal government announced a new Home Builder grant, but what does that mean for you? The new Home Builder Grant goal is to help revitalize a struggling home construction industry as it tries to rebound after the COVID-19 pandemic.
Qualified owner-occupiers are given $25,000 under this program, which can be used to purchase a new home or invest in substantial renovations on an older home. While not everyone qualifies for the Home Builder Grant, but if you do, it offers an amazing opportunity to start the process towards homeownership. If you’re unfamiliar, read on to find out how a Home Builder Grant works.
First, it’s important to understand what exactly a Home Builder Grant is. A Home Builder Grant is a $25,000 payment provided by the federal government to eligible homeowners or prospective homeowners who meet certain qualifying conditions. These conditions include being 18 years of age, an Australian citizen, and meet an income cap.
For an individual, the income cap is $125,000, and it’s $200,000 for a couple, based on 2018-19 or 2019-20 taxable returns. In case you’re unclear, “couple” can refer to two legally married people or a genuine couple living together domestically (family relations, like siblings, do not qualify).
In addition to the requirements to qualify for the program, the Home Builder Grant also comes with other obligations for anyone accepting the payment. The recipient must live in the newly built or renovated home for a continuous period of at least six months as their primary place of residence. The recipient must not have received a Home Builder grant for any other property in a different Australian territory.
Applications for the Home Builder Grant will be handled through a web portal handled by the State Revenue Office. When construction on the home has begun, documentation required by the state for the grant program can also be submitted through the same online portal. Once an application has been submitted and accepted, it takes 15 working days to be reviewed and summarily accepted or rejected. Application decisions can be challenged or objected to as long as that objection is lodged within 60 days of receiving the letter advising the applicant of the decision.
As far as receiving the money, the Home Builder Grant will be given to the recipient after foundations are laid, and the first payment has been given to the builder. If you qualified for a grant for a substantial renovation, the grant would be paid out when construction has begun and $150,000 has been committed to the builder. The recipient of the grant must have a valid Australian cheque or savings account to receive the funds.
If you’re an Australian citizen and find yourself considering purchasing or renovating a home, don’t waste time and find out now if you qualify for a Home Builder Grant. While there are some restrictions on eligibility, it’s easy to use the online portal to determine if you’re eligible and get started on an application. For individuals or families on the fence and considering making an investment in homeownership, the Home Builder Grant program makes being able to purchase a home a real possibility for millions of qualified Australians.
With generous eligibility requirements and flexibility in terms of what types of homes can be purchased with the grant money, Australia’s Home Builder Grant program doesn’t just provide an amazing opportunity for Australian citizens. It can be a model to the world for social programs that can help rebuild the economy after COVID-19.