Blog

June 23, 2020

What Is The HomeBuilder Grant?

In an attempt to boost demand in the construction sector, the Federal Government has launched a HomeBuilder grant scheme offering $25,000 to eligible Australians to go towards building their new home or renovating their home. This effort will help lessen the impact of the Covid-19 pandemic on unemployment rates in Australia amongst builders and tradespeople.

Contracts were expected to decline by 40% however by introducing the HomeBuilder package the fall will not be as extreme as it will provide the construction sector with tremendous relief.  Many other schemes were also launched to support not only the construction sector but also first home buyers. Depending on which state or territory you live in, you can claim other financial grants.

Am I eligible for the HomeBuilder grant?

To be eligible for the HomeBuilder scheme grant of $25,000, homeowners are required to put at least $150,000 of their own money towards building their new home or renovating their existing home.

The scheme will not apply to investment properties or owners who intend on building or renovating on their own without the help of builders. Before being eligible for the grant you will be required to make a payment for the first installment of work of at least $150,000.

Those that will be excluded from the Home Builder grant includes; couples making more than $200,000 per year and individuals making more than $125,000 per year. New builds will be capped at $750,000 and renovations can cost anywhere between $150,000 and $750,000.

The value of the property being built or renovated must also be valued at less than $1.5 million. This grant will be available for 6 months.

What type of renovation work qualifies for the Home Builder grant?

There are a number of criterias that needs to be met to be eligible for the Home Builder grant. The renovation that is to be done must improve the accessibility, safety and livability of the property.

Therefore the Home Builder grant will not be given to renovation work that is to be done to separate structures from your home this includes swimming pools, tennis courts, garages and garden sheds.

How much can first home buyers claim from all government homeowner schemes?

The Homebuilder grant is offered all across Australia, however how much you can claim and what you can claim differs from each state and territory. Below is the schemes available in each state and territory:

Victoria

  • First homeowner’s grant: $10,000 - $20,000. The $10,000 grant is for homes in urban areas while the $20,000 is for homes in regional Victoria. All homes can only be valued up to $750,000 and must have been built within the last five years.

  • Commonwealth first Home Loan Deposit Scheme: up to $10,000

  • With HomeBuilder: access up to between $45,000 and $55,000

  • First home buyers are exempt from paying stamp duty on properties valued up to $600,000, and a concession is available for properties valued between $601,000 and $750,000. 

Visit the first homeowner website for further information. 

New South Wales

  • First homeowner’s grant: $10,000
  • Commonwealth first Home Loan Deposit Scheme: up to $10,000
  • With HomeBuilder: access up to $45,000
  • First home buyers are exempt from paying all or some stamp duty on properties valued up to $800,000

Visit the NSW Government’s first home buyer website for further information. 

Queensland

  • First homeowner’s grant: $15,000
  • Commonwealth first Home Loan Deposit Scheme: up to $10,000
  • With HomeBuilder: access up to $50,000

Visit the Queensland Government’s first home owner grant website.

Tasmania

  • First homeowner’s grant: up to $20,000
  • Commonwealth first Home Loan Deposit Scheme: up to $10,000
  • With HomeBuilder: access up to $55,000
  • Tasmania provides a 50 per cent discount on property transfer duty for first home buyers of established homes, which have a dutiable value of $400 000 or less.

Visit the Tasmanian Government’s first homeowners’ website for more information. 

Northern Territory

  • First homeowners grant: $10,000
  • Commonwealth first Home Loan Deposit Scheme: up to $10,000
  • With HomeBuilder: access up to $45,000

For more information on the Northern Territory’s homeowner assistance schemes, visit their website

Australian Capital Territory

  • Commonwealth first Home Loan Deposit Scheme: up to $10,000
  • With HomeBuilder: access up to $35,000
  • The Homebuyer Concession Scheme means first home buyers in the ACT pay no duty if your household income is below or between $160,000 and $176,650. This number varies on the number of dependents. 

Visit the government’s home buyers assistance website for more information. 

South Australia

  • First homeowner’s grant: $15,000
  • Commonwealth first Home Loan Deposit Scheme: up to $10,000
  • With HomeBuilder: access up to $50,000

Visit the government’s first homeowners website for further information. 

Western Australia

  • First homeowner’s grant: $10,000
  • Commonwealth first Home Loan Deposit Scheme: up to $10,000
  • With HomeBuilder: access up to $45,000

Visit the WA Government’s first home owner grant website for more information.

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