On 3 June 2020, the federal government announced the Homebuilder Grant to encourage individuals to build a new home or substantially renovate their existing home. The grant is aimed at encouraging demand in the residential construction sector with industry bodies painting an otherwise grim picture of the second half of this year.
Homebuilder is a time-limited tax-free grant targeted at owner occupiers who will be provided with a $25,000 grant to build a new home or renovate an existing home. Under the scheme, owner-occupiers (including but not limited to first home buyers) will be provided with the grant if they sign a contract between 4 June and 31 December to carry out construction work (to the value of at least $150,000) which must commence with three months of signature.
Homebuilder complements existing state and federal schemes including the first home owner grant programs, and the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme. Information on how and when Homebuilder can be accessed will become available through state and territory revenue offices in the coming weeks.