The new government housing subsidy has aroused the interest of thousands of Australians. Find out if you are eligible and how you can benefit from the stimulus program.
The new government program HomeBuilder has received its fair share of repercussions, many industry experts denouncing the "very restrictive" rule on the need to spend $ 150,000 more on a renovation to be eligible for the subsidy of $ 25,000.
But despite criticism, more than 12,000 Australians flocked to the Treasury website to express interest in the program a week after its announcement. The grant can also be used by investors who are building new homes worth less than $ 750,000.
Housing Minister Michael Sukkar said the number of requests is likely to increase, with the stimulus package collecting more than 130,000 requests for information from the website.
So, who is eligible for the subsidy and how can the eligible parties apply? Your investment property gives you the answers.
Are you eligible?
To be eligible for the program, you must be:
A current or potential homeowner, not an investor
An individual, not a business or trust
An Australian citizen
At least 18 years old
Earn $ 125,000 or less per year if you are single, or less than $ 200,000 per year for couples (based on the 2018/19 or later tax return)
Where can the grant be spent?
The grant must be used for:
Build a new house as a principal residence with a maximum value of $ 750,000 (including the land); or
Substantially renovate an existing house as a main residence, with renovations valued between $ 150,000 and $ 750,000 and housing not valued at more than $ 1.5 million before the renovation
The renovations must also improve the accessibility, security and habitability of the house. This means that additions to the property that are not connected to the main dwelling, such as swimming pools, tennis courts, outdoor spas and saunas, and detached hangars or garages cannot be part of the improvements . However, combined work such as kitchen and bathroom renovations are allowed.
Who can do the building?
The renovation and construction work must only be carried out by approved builders who obtained their permit before June 4.
The scheme also requires that the owners have no special relationship with their contractor, such as a family relationship.
The terms of the contract should also be commercially reasonable – which means that the price of the contract should not be inflated relative to the fair market price.
In addition, construction or renovations must begin within three months of the date of the contract.
How can you apply for the grant?
To access the subsidy, applicants must pay an approved builder the first installment to start the work. They can then apply for the HomeBuilder incentive through their state or territory revenue office.
The officials will carry out checks and once all the criteria have been met, they will transfer the money directly to the bank account chosen by the applicant.
The program runs from June 4 to December 31.
The government has declared that states will backdate the acceptance of HomeBuilder applications to June 4 once the formal agreement is signed.
Another thing to note is that the $ 25,000 cash grant is in addition to existing home and state homeowner subsidy programs, stamp duty concessions and other grant schemes, the Commonwealth First Home Loan Deposit Scheme and First Home Super Saver Scheme.
Main suburbs:
mt colah
,
Penrith
,
south cardiff
,
Wentworthville
,
wiley park
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