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HomeBuilder and Building Bonus | How much can you get?

HomeBuilder and Building Bonus | How much can you get?

09 June 2020 Ryan Smith Finance

There has been an increase in support for homeowners this month as I’m sure you would have noticed; it’s had people talking. This is fantastic news and a step in the right direction for the Perth property market. Here we review some of the new policies that have come into play in June.

The Home Builder grant for new home builds and renovations of up to $25,000 was announced on June 5th. This is a tax-free grant that is not only accessible by first homeowners, but all homeowners. To be eligible for this scheme, you must meet the below criteria.

  • Be an Australian citizen aged 18+
  • Be on an income of less than $125,000 or $200,000 as a couple
  • Be spending $150,000-750,000 on renovations
  • Or, be building a new home with land and building costs less than $750,000

This is not available for investment properties or additions to the property such as, pools, tennis courts, garages etc only the dwelling itself.

If you signed the contract after 4th June 2020 you will be eligible through to the end of the year, 31st December 2020 and construction must begin within 3-months of the contract. This scheme is uncapped by the government and the expectation is it’ll cost around $680 million.

The State Government also announced on 8th June a $125 million home building stimulus package. A ‘Building Bonus’ grant up to $20,000. This can be accessed in conjunction with the HomeBuilder grant and is available to more applicants with has less eligibility criteria.

  • Owner-occupiers and investors alike
  • Property already purchased and currently in construction
  • No property value cap

In addition to this, if you are a first homeowner, you will still be eligible for $10,000 First Home Owner Grant as well as exemptions from stamp duty.

Prime Minister Scott Morrison says: “This investment isn’t just about helping Australians bring their dream home to life, it’s about creating jobs and helping support the more than one million workers in the sector including builders, painters, plumbers and electricians across the country.”

Buying a home or looking to refinance? There are some fantastic rates available at the moment, some of the lowest we’ve ever seen. Make sure you speak to a broker to get the best finance deal available to you and to keep up-to-date on all government changes. Call Nick Constantine on 0418 919 203.

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