The government will introduce a $25,000 grant for eligible owner-occupiers to build a new home or substantially renovate an existing home.
The HomeBuilder grant will be available to individuals under the $125,000 income cap ($200,000 for couples) entering into a building contract between 3 June and 31 December 2020 to build a new home or substantially renovate their existing home, where construction commences within three months of the contract date. For new homes, the total value of the land and new build cannot exceed $750,000 and must become the grant recipient’s principal place of residence. Renovation contracts must be between $150,000 and $750,000, where the value of the property prior to renovations does not exceed $1.5 million.
The HomeBuilder grant will be non-taxable and will be paid by the relevant state or territory authority. The program is not available for investment properties or to owner-builders. Additions to property such as tennis courts, swimming pools, sheds and garages that are unconnected to the property are excluded for renovation contract purposes.
Information on the application process will be issued through the relevant state or territory authority.
From CAP TAX News – 11 June 2020 / Edition 22