COVID-19 National: Individuals – HomeBuilder Scheme

This program aims to help the residential construction market to bounce back from the Coronavirus crisis. It is a time-limited grant program that will provide eligible owner-occupiers (including first home buyers) with a grant to build a new home or substantially renovate an existing home.

The scheme forms part of the Australian Government's Economic Response to the Coronavirus. It complements existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

HomeBuilder is being implemented via a National Partnership Agreement signed by the Commonwealth Government and all State and Territory Governments. This approach utilises existing State and Territory mechanisms to distribute the HomeBuilder payments.
 
On 29 November 2020, the Government announced an extension to the HomeBuilder program to 31 March 2021. Changes to the program include:
- A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021, inclusive.
- An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
- An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 4 June 2020.

Payment of the HomeBuilder Grant depends on whether the application relates to a new build, substantial renovation or off-the plan/new home purchase:
- New builds – grants will be paid after the foundations have been laid and the first progress payment has been made to the builder.
- Substantial renovations – grants will be paid after construction has commenced and at least $150,000 of the contract price has been paid in respect of the renovation.
- For off-the-plan/new home purchases – grants will be paid after the applicant(s) name is registered on title.

This measure is expected to have a cost of $921 million. Final program costs will depend on actual take-up of the grant and may differ from these estimates as HomeBuilder is an uncapped and demand-driven program.

Information on how to access HomeBuilder is available through the relevant State or Territory. Please refer to the website for the application details of each State or Territory.

Eligible applicants include owner-occupiers who must:
- Be a natural person (not a company or trust).
- Be aged 18 years or older.
- Be an Australian citizen.
- Meet one of the following two income caps:
a) $125,000 per annum for an individual applicant based on their 2018-19 or 2019-20 taxable income.
b) $200,000 per annum for a couple based on their combined 2018-19 or 2019-20 taxable income.

Applicants must also enter into a contract from:
1. For the $25,000 grant: 4 June 2020 to 31 December 2020 (inclusive) to either:
- Build a new home as a principal place of residence, where the property value does not exceed $750,000.
- Substantially renovate their existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of their existing property does not exceed $1.5 million.
- Purchase an off-the-plan/new home as a principal place of residence where the contract price does not exceed $750,000 and construction had not commenced prior to 4 June 2020.

2. For the $15,000 grant: 1 January up to 31 March 2021 (inclusive) to either:
- Build a new home as a principal place of residence, where the property value (i.e. house and land) does not exceed:
a) $950,000 if the dwelling is in New South Wales.
b) $850,000 if the dwelling is in Victoria
c) $750,000 in all other States.
- Substantially renovate an existing home as a principal place of residence, where the renovation contract is greater than $150,000 and does not exceed $750,000, and where the value of the existing property (i.e. house and land, before renovation) does not exceed $1.5 million.
- Purchase an off-the-plan/new home as a principal place of residence where construction had not commenced prior to 4 June 2020 and the contract price does not exceed:
a) $950,000 if the dwelling is in New South Wales.
b) $850,000 if the dwelling is in Victoria.
c) $750,000 in all other States.

Construction must commence within six months of the contract date.

Houses (including house and land packages) and apartments (including off-the-plan) may be eligible for HomeBuilder – provided the applicant meets the eligibility criteria, including that the owner-occupier must contract to build a new dwelling or substantially renovate their existing dwelling.

Renovations must substantially alter the existing dwelling, and:
- The renovation contract must be between $150,000 and $750,000.
- The value of the existing property (i.e. house and land, before renovation) must not exceed $1.5 million.

To be substantial, the renovation need not involve removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircases. However, it should improve the accessibility or safety or liveability of the property. How accessibility and liveability requirements are assessed for renovations is a matter for States and Territories.

Examples of works that would not qualify include: standalone granny flats, swimming pools, tennis courts, and structures that are not connected to the property (i.e. outdoor spas and saunas, sheds or standalone garages).