Secure up to $69,000 in housing grants

The HomeBuilder Scheme – up to $25,000

The Australian Federal Government has announced the new HomeBuilder Scheme to support the residential construction sector. Eligible Australian can receive up to $25,000 to assist in the construction or renovation of their homes. The HomeBuilder Grant is available in conjunction with the First Home Owners Grant (FHOG), the stamp duty concessions, and other Federal grants.

In saying this, you do not have to be a first home buyer to take advantage of the HomeBuilder Scheme. Investment properties do not qualify for the grant. Property owners who intend on building or renovating on their own (owner-builder), without the help of builders, will not be eligible for the grant.

Eligibility for the HomeBuilder Scheme Grant: 

  • Applicant must be an Australian citizen
  • Aged 18 years or older
  • Only applicable to owner-occupied properties
  • Off-the-plan apartments are also acceptable
  • Construction must commence within 3 months of the contract date
  • Taxable income must be below the following thresholds –
    • $125,000 per annum for individuals
    • $200,000 per annum for couples
New Homes
  •  The new home must be the applicant’s principal place of residence
  • The combined property and land value must not exceed $750,000
  • The land should be purchased before or after 4 June 2020
  • The contract to build must only be entered after 4 June 2020
  • Payments will only be made after the slab down phase
Renovations
  • The existing value of the property must be less than $1.5 million. To clarify, this is the pre-renovation value of the property and land
  • The value of the renovations must be between $150,000 – $750,000
  • Renovations must be substantial. In other words, the renovations must improve accessibility, safety or liveability of the property to qualify for the grant. Luxury renovations such as pools, tennis courts, spas, etc will not be part of the grant
  • Quotes will have to be provided in order to receive payment of the grant
Construction
  • The contracts must be entered between 4 June 2020 – 31 December 2020

The HomeBuilder Scheme is a tax-free grant which is only available for a limited time. Therefore, it is important that you act quickly to take advantage of the grant.


New Home Construction Grant (WA) – up to $20,000

The WA State Government has also announced the new Building Bonus. Eligible Australians can receive up to $20,000 for the construction of new homes on vacant lots of land. In addition, anyone who has entered an off-the-plan contract to purchase a new home can receive the grant. However, only single-tiered properties are eligible. Multi-tiered strata and off-the-plan townhouses are excluded from the grant.

The New Home Construction Grant is available in conjunction with the First Home Owners Grant (FHOG), the HomeBuilder Scheme, the stamp duty concessions, and other Federal grants. In saying this, you do not have to be a first home buyer to take advantage of the New Home Construction Grant.

Eligibility for the New Home Construction Grant: 

  • Applicant must be an Australian citizen
  • Aged 18 years or older
  • Applicants can reside in Australia or overseas
  • Applicable to owner-occupied properties and investment properties
  • Construction must commence within 6 months of the contract date
  • The building contract must be entered between 4 June 2020 – 31 December 2020
  • Mixed used, commercial purposes or short stay accommodation are not eligible

 

Payment of the grant will only be made after the slab down phase. The New Home Construction Grant will be lodged through the banks to the Office of State Revenue (OSR) WA, just like the First Home Owners Grant. It is important to note that the New Home Construction will only be paid for each vacant lot of land, regardless of how many homes will be built. However, multiple grants can be paid to the same applicant on separate transactions.


First Home Owners Grant (FHOG) – up to $10,000

The First Home Owners Grant (FHOG) is a once-off payment to encourage first home buyers to get into their own home. Eligible Australians can receive up to $10,000 to buy or build their first home. The FHOG can be used in conjunction with the new grants, as well as with the stamp duty concessions.

Eligibility for the First Home Owners Grant:

  • Applicant must be an Australian citizen
  • Aged 18 years or older
  • Applicant must not have previously applied for the grant
  • The building of new properties or purchasing off-the-plan. In other words, established/off-the-plan properties are not eligible for the grant
  • The property value must be under $420,000

To be eligible for the FHOG, the property must be occupied as the applicant’s principal place of residence. Therefore, the applicant must reside at the property for at least 6 months commencing within 12 months of settlement or completion of the build.


Home Buyers Assistance Account (HBAA) – up to $2,000

The Home Buyers Assistance Account is a $2,000 rebate available only to first home buyers. The HBAA is the reimbursement of settlement fees and legal costs involved with the purchase of such property.

Eligibility for the Home Buyers Assistance Account Grant: 

  • Applicant must be an Australian citizen
  • Aged 18 years or older
  • Only available for first home buyers
  • The value of the property must be under $400,000
  • A licensed real estate agent should assist in the purchase of the property
  • A lending institution should assist in securing the finance for the purchase
  • The dwelling must be established (or partially built) at the time of acceptance of the contract to purchase. A plan to build a dwelling will not be accepted.
  • Lodgement of applications should take place within the first 90 days after settlement of the contract to purchase

Similar to the First Home Owners Grant, the property must be occupied as the applicant’s principal place of residence. The applicant must reside at the property for at least 12 months. The dwelling cannot be rented out during this time.

Get in touch with our Mortgage Team

To find out if you are eligible for one or more of the current Government grants, please contact your Pacific Finance Broker via [email protected] or give us a call on (08) 9321 2120. To make it easier to understand all the Housing Grants currently available, the Pacific Team has consolidated the latest Federal and State Housing Grants into an eBook.

Download our Housing Grants eBook via the link below.