The $25,000 HomeBuilder Grant

The $25,000 HomeBuilder Grant


The $25,000 HomeBuilder Grant 

All Your Questions Answered 

The Great Australian Dream has never been more in reach with the Federal Government now offering home builders a $25,000 grant to commence construction on their new home. As part of its response to minimising the economic impact of COVID-19 the grant is designed to underpin activity in Australia’s construction sector. Plus if your a first home buyer, you will be eligiable for the $15,000 First Home owners grant in addition to this. Find out more here

With the HomeBuilder grant subject to strict eligibility criteria, price caps and income caps to manage demand and support residential construction activity we want to make sure anyone thinking of making the move to the Ripley Valley’s number one community is aware of all the details about the grant.

What is the HomeBuilder Grant?

The HomeBuilder Grant AKA “HomeBuilder”, provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations.

The grant is not a loan and there is no obligation to repay the money. If you meet the eligibility criteria the money is simply paid to you at settlement.

Does  the HomeBuilder apply to first home buyers?

Yes. HomeBuilder will complement the Queensland Government’s existing $15,000 first homeowner grant. If you meet the eligibility criteria for both grants you can get a total of $40,000 towards construction of your new home. For more information about the Queensland first home owner grant please visit here.

Can I use the HomeBuilder grant to build at Providence?

Definitely. Providence currently has a wide range of house and land packages ready to go, or you can reserve your land now and then spend some time finding the right home to build.


Are there any other incentives available to home buyers?

There are a range of programs currently in place to help people achieve the dream of home ownership. You may also be eligible for stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme. 

Commonwealth’s First Home Loan Deposit Scheme

First Home Super Saver Scheme

What is the criteria for the HomeBuilder grant?

What is the criteria for the HomeBuilder grant?

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

  • you are a individual person (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 (see more information below):

    • $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or 

    • $200,000 per annum for a couple based on both 2018-19 tax returns or later; 

  • you enter into a building contract between 4 June 2020 and 31 December 2020 to either:

    • build a new home as a principal place of residence, where the property value does not exceed $750,000; or 

    • substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million; 

  • construction must commence within three months of the contract date.


When will the HomeBuilder grant  be paid?

The government has not yet released details about when the $25,000 grant will be paid to successful applicants. It could be at settlement of your land, when the slab is poured or when the house reaches practical completion. Stay tuned for more information about this.


How will they assess my income?

The income cap is the same as the First Home Loan Deposit Scheme, so your income as an individual needs to be under $125,000 per year and as a couple your combined income needs to be under $200,000. The income limit is based on your gross income, before tax and excluding superannuation. 

The easiest way to check your income is to download your 2019 Notice of Assessment, which shows your taxable income for the 2018-2019 financial year. 

The Government has also said the income cap will be based on your individual ‘2018-19 tax return or later’ so if you earned less last year, but will earn more this year they will use the most recent year to confirm your income. 

This may get audited, and if for example you earned $120,000 in 2018-19 tax year and then earned $130,000 in 2019-20 tax year they could make you repay the $25,000 Grant. 


Can the HomeBuilder grant be used as a deposit?

Probably not. You’ll need to ask your bank, but most will consider HomeBuilder in the same light as the First Home Owners Grant, and it will be viewed as non-genuine savings. 

Unlike the First Home Owners Grant which can be factored as part of your bank deposit, because we currently don’t know when the HomeBuilder is going to be paid the banks will not factor this as part of your savings or deposit when assessing your loan application. 

How do I apply for the $25,000 HomeBuilder Grant?

You will be able to apply for HomeBuilder when the relevant State or Territory Government that you live in, or plan to live in, signs the National Partnership Agreement with the Commonwealth Government. 

The Queensland Government has not yet released details about the process for applications but will backdate acceptance of any applications to 4 June 2020. 

What documentation is required  for the HomeBuilder Grant?

The Queensland Government will require certain documents to process your application. Whilst it’s not yet set in concrete, it is expected that you will need to provide the following at a minimum: 

  • proof of identity;

  • a copy of the contract, dated and signed by you and the nominated registered or licenced builder;

  • a copy of the builder’s registration or licence (depending on the state you live in);

  • a copy of your 2018-19 tax return (or later) to demonstrate your eligibility against the income cap; and

  • documents such as council approvals, building contracts or occupation certificates and evidence of land value.


What type of dwellings are eligible for the HomeBuilder Grant?

All dwelling types (house, apartment, house and land package, off-the-plan, etc) are eligible under HomeBuilder, in accordance with the requirement that the owner-occupier must contract to build a new dwelling or substantially renovate their existing dwelling. The applicant must also meet the eligibility requirements outlined above.


How long do I have to apply for the HomeBuilder grant?

HomeBuilder is a time-limited grant program to help the residential construction market to bounce back from the Coronavirus crisis. To get access to the grant you will sign a construction contract before 31 December 2020. Construction must commence within three months of the contract date.


Providence Case Study

First home buyers Emma and Liam decide to purchase a house and land package at Providence for $450,000. 

Emma and Liam have a 5% ($21,250) deposit and decide to wait until July 1 when a new round of the First Home Loan Deposit Scheme (FHLDS) opens. The FHLDS scheme will guarantee a further 15% deposit so the couple can avoid paying about $15,000 in Lenders Mortgage Insurance (LMI).

As part of the loan application process Emma and Liam’s bank applies on the couple’s behalf to the Queensland Government (final application process yet to be announced) to receive the HomeBuilder $25,000 grant. 

The revenue office conducts the eligibility checks and reviews the couple’s documentation and confirms that both Emma and Liam are Australian citizens, over the age of 18, have a combined taxable income under $200,000 based on their 2018-19 tax return and the value of the contract is under the $750,000 contract price cap. 

As the couple are both first home buyers, Emma and Liam are also be entitled to Queensland’s First Home Owner Grant of $15,000 taking the total grants available to $40,000.

Because the home is worth less than $505,000 and the they are first home buyers the couple will also be eligible for stamp duty concession valued at $8,750. 

In total, Emma and Liam have the potential to save around $63,750 by buying at Providence today.


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