On 4 June 2020, the Treasurer announced the introduction of the HomeBuilder grant scheme.
The HomeBuilder grant consists of a $25,000 grant that individuals can apply for where they purchase a land and building package or enter into a contract to undertake substantial renovations to a property they already own between 4 June 2020 and 31 December 2020.
In order to obtain the grant, the property must represent the principal place of residence of the taxpayer and the property must be held by an individual rather than a trust or company structure.
In order to qualify for the grant, there are two main conditions that need to be satisfied:
Condition 1 – The purchase price of the house and land package cannot exceed $750,000, or, if the taxpayer already owns the property and is undertaking a substantial renovation, the cost of the renovation must be between $150,000 – $750,000 and the value of the property prior to the renovation occurring cannot exceed $1.5M.
Condition 2 – The taxable income of the taxpayer for the 2019 financial year cannot exceed $125,000 or the taxable income of the taxpayer and their spouse for the 2019 financial year cannot exceed $200,000.
At this stage, Treasury has only released a press release announcing the scheme. As and when further details of the scheme are announced, we will provide further updates.
If you have any further questions relating to the HomeBuilder grant, please do not hesitate to contact your client service contact at Banks Group.