Home builder Scheme Victoria, what is it? How can it help eligible Victorians? What does it involve?
There are so many schemes, concessions and grants that the Victorian government have put in place, we can explore what those Grants, Schemes and Concessions are.In this article we will be addressing what the HomeBuilder Scheme is, how it works and how to find out if you are eligible.
What is Homebuilder Scheme Victoria?
The Australian Governments HomeBuilder Scheme provides eligible owners, including first home buyers with a $25,000 grant, this can be used to build a new home or renovate an existing house. The HomeBuilder Scheme is a Tax free, time limited grant program, designed to help the residential and commercial industry get through COVID-19 Pandemic. It is also designed to complement existing Territory and State first home owner grant programs, stamp duty concessions and other grant programs.
The Homebuilder Scheme Victoria on behalf of the Australian Government, the State Revenue Office will administer the HomeBuilder program in Victoria.
These criteria apply to everyone – whether applying as an individual or as a couple.
- You must be an Australian citizen at the date of application.
- You must be 18 years of age.
- Your 2018–2019 or 2019-2020 annual taxable income must be below $125,000 (for an individual) or $200,000 (for a couple).
- You must not have previously received a HomeBuilder grant in any Australian territory or state.
- The home will be your primary place of residence after settlement or completion.
- Eligible homes: The home must be located in Victoria, suitable as a place of residence, fixed to your land, and owned, or will be owned, by you (both land and dwelling).
HomeBuilder Scheme Victoria is available for one of the following contracts which must be signed between June 4, 2020 and December 31, 2020 (inclusive):
- A contract to purchase a new home as your primary place of residence where the contract price doesn’t go beyond $750,000. Construction must not have commenced before June 4, 2020.
- A home building contract to build a new home as your primary place of residence where the property value doesn’t go beyond $750,000.
- A contract with a registered builder to renovate your primary place of residence where the renovation contract costs between $150,000 and $750,000. The value of your existing house and land must not exceed $1.5 million. Note: If you own a property and demolish the house to rebuild, or if your home was destroyed during the 2019-2020 Victorian bushfires, these will be treated as a substantial renovation subject to similar values.
When Can I Receive the HomeBuilder Grant?
HomeBuilder Grants will be paid by the relevant Territory or State authority, provided the applicant meets the eligibility criteria.
I’m Not a First Home Buyer. Can I Still Access the HomeBuilder Grant?
Provided that you have met the criteria for the eligibility, you can still access the HomeBuilder Scheme even if you are not a first home buyer. However , note that HomeBuilder is not available to owner-builders or for investment properties.
For more information, I urge you to visit the Australian Government’s HomeBuilder webpage: https://treasury.gov.au/coronavirus/homebuilder.
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
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