10 Jun 2020

HomeBuilder $25,000 Rebate Scheme

$25,000 from the Government to help boost the construction industry.

A Brief Introduction

The recently announced HomeBuilder grant provides eligible owner-occupiers (as well as first home buyers) with access to a $25,000 building grant to assist with the cost of building a new home or substantially renovate an existing home. The aim of the HomeBuilder assistance package is to help the construction industry bounce back from the recent Coronavirus pandemic of 2020.

Excerpt from The Gold Coast Bulletin on Thursday 11th of June. Reporting on the new $25,000 builder scheme.

What are the rules to the scheme?

Information on when and how to apply for the scheme will be made available via your state or territories revenue office. You will be able to apply for the HomeBuilder scheme once your relevant state or territory government that you live in signs the National Partnership Agreement with the Commonwealth.

For more information on what this means for the construction industry, contact 13 28 46, or check out business.gov.au.

For homeowners, the rules that will be imposed are yet to be finalised. At this point, what is known is the following:

The cash grant will be awarded to contracts entering between the 4th of June and the 31st of December.
Work must start within 3 months of the contract date.
A means test allows the grant for singles with an income less than $125,000 and couples up to $200,000.
The work must be valued between $150,000 and $750,000.
The existing home cannot exceed $1.5 million.
New homes built cannot exceed $750,000.
The grant must be used for a principal place of residence, and the additions must improve accessibility, safety, and the liveability of the residence.

This grant is a great incentive by the Australian government at a critical time. We are very glad to hear this amazing news and hope to see plenty of new opportunities arise. If you have any questions about the grant and how it may apply to your situation, feel free to visit us at our office to clear up any confusions.

Expected effects of the scheme

The Australian Government has made a step in the right direction to help boost vital sectors of the Australian workforce during these tough times. The proposed measures should do a great job of funding those that need it while not pouring more money into deep pockets. However, as you understand the rules set out with this scheme, it is apparent that it isn’t as easy as first thought. One of the main points here being the need for the work to be valued between $150,000 and $750,000. This means that in the best-case scenario, $25,000 to cover a $150,000 project is only a 16.67% refund. Then at the worst-case, $25,000 of $750,000 is only 3.34%. This rule in particular is well worth some detailed attention.

It’s not expected that every construction worker will be back at their jobs via this scheme. However, if you can make use of the grant, it’s in the interest of everyone in the community to give it a go during the current crisis.