The Federal Government today announced a new stimulus package for the construction sector.
Owner-occupiers who enter into a building contract to construct a new home or substantially renovate an existing home before 31 December 2020 may receive a HomeBuilder grant of $25,000.00.
The value of the new home (including the land) must be $750,000 or less.
Renovations to be carried out must be between $150,000 to $750,000 in value. The dwelling must also not be valued at more than $1,500,000 prior to the renovation being carried out.
Importantly, construction must commence within three months of the date of the building contract. Further clarity will be required from the Federal and State governments as to what “commencement” of construction means in order for a purchaser to be eligible to receive the grant.
Income thresholds will also apply to the grant, being $125,000 for singles and $200,000 for couples.
The grant will only be available to owner-occupiers. Investors and owner-builders are not eligible to receive the grant. The grant also cannot be used for external additions to a residence (such as swimming pools, tennis courts, spas or sheds).
Further information from the Federal government can be found here.
Please contact the Beck Legal Property team on 54453333 if you require any further information about the HomeBuilder grants.