HomeBuilder program extended

On 29 November 2020, the Federal Government announced that the HomeBuilder program will be extended to 31 March 2021. The HomeBuilder program provides eligible owner-occupiers a grant to build a new home or substantially renovate an existing home.
 
The following changes have been announced:  
 
  • A $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021.
  • An extended deadline for all applications to be submitted, including those applying for the current $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021. This will apply to all eligible contracts signed on or after 4 June 2020.
  • An extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021 but will also be backdated and apply to all contracts entered into, on or after 4 June 2020.
  • An increase to the property price cap for new build contracts in New South Wales and Victoria to $950,000 and $850,000, respectively, where the contract is signed between 1 January 2021 and 31 March 2021. 
    • Note, the existing new build property price cap of $750,000 will continue to apply in all other States and Territories.
  • A change in licensing requirements and registration for builders and developers, as follows: 
    • Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.  
    • Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
The other eligibility requirements in the existing program still apply and the $25,000 HomeBuilder grant will still be made available for eligible contracts signed on or before 31 December 2020. For more information in relation to the requirements for the program, refer to our earlier HomeBuilder article.

The following provides a summary of the key dates and thresholds for the HomeBuilder program:
 
HomeBuilder program criteria Contracts signed between 4 June and 31 December 2020 (inclusive) Contracts signed between 1 January and 31 March 2021 (inclusive)
Grant amount (new builds and substantial renovations) $25,000 $15,000
Construction commencement timeframe Construction must commence within six months of the contract being signed.
New build price cap Property value cannot exceed $750,000 Property value cannot exceed:
  • $950,000 in NSW
  • $850,000 in Victoria
  • $750,000 in all other States and Territories
Substantial renovation price cap The value of the property cannot exceed $1.5 million (pre renovation) and the value of the renovation contract is between $150,000 and $750,000.
Application deadline Applications must be submitted to the relevant State Revenue Office by 14 April 2021.
Licensing requirements for builders/developers Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.

Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Other eligibility criteria Existing program eligibility criteria remains. Refer to our previous HomeBuilder article.
 

If you would like to find out if you are eligible, or would like to discuss your circumstances, please contact your local Moore Australia advisor.