The Federal Government has announced that it will be offering eligible Australian $25,000 to build or substantially renovate their homes known as the HomeBuilder scheme. The measure is expected to cost $680m.
- Must be an owner-occupier (including first home buyer)
- Must be a natural person (not a company or trust)
- 18 years or older
- Australian citizen
- Must meet one of the following two income caps:
– $125,000 per annum for an individual applicant based on their 2018 – 19 tax return or later; or
– $200,000 per annum for a couple based on both 2018-19 tax returns or later
- Entering a contract between the below dates to either:
– Build a new home as a primary place of residence for a property not exceeding $750,000; or
– Substantially renovate your existing home as a primary place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of the property does not exceed $1.5m
Contracts must be signed between 4 June 2020 and 31 December 2020 and construction must commence within three months of the contract date.
How to Apply
Applications will be made with your relevant State and Territories as all distribution will be made with existing grant processes. How this will be made is yet to be announced.
Things to Know
Owner-builders and those who are looking to renovate or build a new home as investment property are ineligible for HomeBuilder.
When negotiating a building contract, parties must be made between the two parties freely and independently of each other, and without some special relationship, such as being a relative. The contract price must also be commercially reasonable and not inflated compared to the fair market price.
Only registered or licenced building service providers can undertake the work.
No additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages are permitted under the scheme. Only improvements to the accessibility, safety and livability of the dwelling.
How Can Box Advisory Services Accountants Help with JobKeeper?
Box Advisory Services are a team of Chartered Accountants who are here to help small businesses and contractor businesses with their JobKeeper Payment applications and lodgements. Our team of accountants will be able to help you with the initial and ongoing JobKeeper requirements. Get in touch with us or make an appointment to find out how we can assess and help you with your business during the COVID-19 pandemic.
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available to contractors and small businesses. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek a second professional opinion for any legal or tax issues raised in your business affairs.