$25,000 for building or renovating houses

By Juliano Oliveira

The Federal Government will offer S25,000 to eligible owner-occupiers interested in building or substantially renovating an existing home.

Based on this program, dubbed HomeBuilder, the government intends to boost the residential construction sector affected by COVID-19 restrictions. The plan is expected to provide around 27,000 grants at a total cost of around $680 million.

All applications must follow criteria as income caps of $125,000 for singles and $200,000 for couples based on their latest assessable income.

New houses will have a maximum price of $750,000, and a renovation price range of $150,000 up to $750,000 to renovate an existing home with a current value of no more than $1.5 million.

Construction must be contracted to commence within three months of the contract date.

“In doing so, HomeBuilder will help to support the 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector including businesses and sole-trader builders, contractors, property developers, construction materials manufacturers, engineers, designers and architects,” says the Federal Government.

“This increase in residential construction will help to fill the gap in construction activity expected in the second half of 2020 due to the coronavirus pandemic.”

The HomeBuilder program will be implemented via a National Partnership Agreement, signed by the Commonwealth and state and territory governments.