HomeBuilder package announced to stimulate residential construction
Home builders and renovators could receive $25,000 cash grant from the Federal Government for home improvement or construction worksThe Morrison Government has today announced its HomeBuilder package in an attempt to resuscitate an ailing construction industry and economy in recession.
The residential construction sector was bucking the trend earlier this year recording expansions in activity while the rest of the sub sectors suffered declines, according to the Australian Industry (Ai) Group’s monthly activity reports. That was, until COVID-19 hit and plunged the entire industry into a state of contraction and uncertainty.
The Federal Government’s HomeBuilder package is hoped to create more jobs in the residential construction sector as well as support thousands of other jobs in related industries such as property developers, architects, construction material manufacturers and more.
Through the HomeBuilder package, all eligible owner-occupiers - including first home buyers - will be able to receive $25,000 to put towards building a new home or substantially renovating an existing home.
The package is available from today until December 31, 2020 to eligible applicants.
HomeBuilder applicants will need to meet several criteria to be eligible for the package:
- Applicants must be Australian citizens aged 18 and over
- Income caps of $125,000 for singles and $200,000 for couples apply, based on their latest assessable income
- The property that will be built or renovated must be the principal place of residence for the applicant(s)
- If building a new home, the property value (house and land) cannot exceed $750,000.
- If renovating, the contract must be between $150,000 and $750,000, and the value of your existing property (house and land) must not exceed $1.5 million
- Construction must commence within three months of the contract date
The Federal Government expects to provide around 27,000 grants under the HomeBuilder package at a total cost of around $680 million.
The HomeBuilder package 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.
The program will be implemented via a National Partnership Agreement, signed by the Commonwealth and state and territory governments.
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