Government announces home builder scheme
In an effort to stimulate the economy and protect the construction industry, the Federal Government has announced a home builder scheme for the construction of new homes and renovations.
Grants of $25000 are available to finance new home building and substantial renovations to existing homes. The grants can be obtained by making an application to the relevant State authority.
To be eligible for a grant, applicants must meet the following criteria.
- They must be a natural person over the age of 18 (not a trust or company) who s a citizen of Australia
- Meets the income cap criteria of $125000 per annum (individual applicants) and $200,000 (couples)
- A building contract is signed between the 4th of June 2020 and 31st December 2020
- The building contract for a new home must not exceed $750,000
- The contract for substantial renovations must be between $150,000 and $750,000 and the value of the existing property must not exceed $1.5 million
- Construction must start within three months of the commencement date
To gain approval you will need to supply the relevant state authority with proof that you meet all the criteria. This proof will include
- Suitable proof of your identity
- A copy of the building contract signed by all parties
- A copy of the builder’s registration certificate or licence.
- Suitable proof of income (copies of latest tax returns)
- All relevant approval documentation such as council planning certificates, occupation certificates and land value certification
This initiative may make the difference for people contemplating new construction projects in these uncertain times. If you would like assistance to see whether you can make this home builder scheme fit your current needs please contact the team at Australian Finance Hub