Update 26/3/23

As Master Builders NSW, we welcome the decision by the Albanese Government to extend the application deadline for the HomeBuilder scheme. We also appreciate the efforts of the federal, state, and territory governments to allow existing applicants who may miss the deadline of 30 April 2023 an extension until 30 June 2025.

As we face weather disruptions and supply chain constraints, including labour and material shortages, building timelines have been severely delayed. We have witnessed the average time it takes to build a home shift from nine to over 12 months. This extension will allow builders to have sufficient time to deliver on projects during this challenging time in the industry.

We would like to express our gratitude to Minister Julie Collins for listening to the concerns of builders and the community. With this extension, Australians will not miss out on the opportunity to turn their home building dreams into a reality.

Update 14/8/20

Revenue NSW is now accepting applications for the Commonwealth HomeBuilder Grant. For further information on eligibility and the application process, please refer to the HomeBuilder guidelines and application form available on the Revenue NSW website. You can also contact Revenue NSW at Home.Builder@revenue.nsw.gov.au or call 1300 130 624.

Previous Updates

The Government’s HomeBuilder will provide eligible owner-occupiers (not just first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. 

Summary

• HomeBuilder is a time-limited and demand-driven grant program to help the residential construction market to get through the COVID-19 pandemic.
• HomeBuilder will provide eligible owner-occupiers (not just first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is entered into between 4 June 2020 and 31 December 2020.
• Construction of a new home or substantial renovation must be contracted to commence within three months of the contract date.
• Consistent with the Morrison Government’s principles, the Scheme will be implemented through existing systems being the States’ respective Revenue Offices.
• HomeBuilder will complement 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.

Eligibility

To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:

• you are an individual, not a company or trust;
• you are aged 18 years or older;
• you are an Australian citizen;
• you meet one of the following two income caps:
  • $125,000 per annum for an individual applicant based on 2018/19 tax return or later; or 
  • $200,000 per annum for a couple based on your combined on 2018/19 tax return or later;
• you enter into a building contract between 4 June 2020 to 31 December 2020 to either:
  • build a new home as a principal place of residence valued up to $750,000 (including land); or
  • substantially renovate your existing home as a principal place of residence, with renovations valued at between $150,000 and $750,000 with the dwelling not valued at more than $1.5 million before the renovation;

Implementation criteria 

• The respective revenue offices of each of the States will implement the Scheme and will use existing mechanism to mitigate the chances of fraud occurring.
• Owner-builders and those seeking to build a new home or renovate an existing home as an investment property are ineligible for HomeBuilder.
• Funding will go directly to individuals, not the contractors, and the individuals are committing a significant amount of investment themselves that this grant will complement.
• The forecast for the market means contractors will be operating in an environment with strong competition for work, ultimately helping drive lower prices.
• Renovations or building work must be undertaken by a registered or licenced building service 'contractor' (depending on the state or territory you live in) and named as a builder on the building licence or permit. They must have held the building licence or endorsed contractor licence before the date of announcement.
• The registered or licensed builder (depending on the state or territory) must demonstrate that the contract price for the new build or substantial renovation be no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser.
• In negotiating a building contact, the parties must deal with each other at arm’s length;
  • This means the contract must be made by two parties freely and independently of each other, and without some special relationship, such as being a relative.
  • The terms of the contract should be commercially reasonable and the contract price should not be inflated compared to the fair market price.

What can be renovated using HomeBuilder?

• The renovation works must be to improve the accessibility, safety and liveability of the dwelling.
• The renovation can be a combination of works (ie kitchen and bathroom renovation) but must be under the supervision of a registered or licenced builder.

What cannot be renovated using HomeBuilder? 

• Homebuilder cannot be for used for additions to the property that are unconnected to the principle place of residence such as swimming pools, tennis courts, outdoor spas and saunas, and detached sheds or garages.

Timing and how to apply 

• More information on HomeBuilder, including eligibility, can be found on the Treasury Coronavirus Economic Response website.
• People will be able to apply for HomeBuilder when the relevant State or Territory Government that they live in, or plan to live in, signs the National Partnership Agreement.
• States and Territories will backdate acceptance of HomeBuilder applications to 4 June 2020. Applications will only be accepted up to and including 31 December 2020.
• Information on when and how you will be able to apply through the relevant State or Territory will become available in due course.

What if a contract has already been signed?

The Federal Government has advised that this would not be considered new work, even if the contract is terminated and a new contract entered into for the balance of the work.  As the grants will be administered by the State and Territory Governments, the detail is still to be worked out, but this will be part of the criteria. 

Federal Government FACT SHEET (18 June 2020)