On 4th June, 2020, the Australian Government announced its “HomeBuilder” plan to stimulate the residential construction industry with a huge $25,000 cash incentive grant for first-homebuyers and second-home buyers. The WA State Government then announced its own stimulus package of $20,000 on 7th June. Plus, with the $10,000 First Home Owners Grant, eligible homebuyers could qualify for up to $55,000 in cash grants.
So whether you’re a first-homebuyer, second-homebuyer, or simply looking to know your options, we’re here to help.
When do the HomeBuilder and WA Building Bonus grants officially kick in?
The HomeBuilder $25,000 and the WA Building Bonus $20,000 grants are effective from 4 June 2020 to 31 December 2020 for new building contracts.
Are there any income limits to be eligible?
Yes and no. The Federal HomeBuilder $25,000 grant is capped at $200,000 for couples, and $125,000 for individuals.
However, these income limits do not apply to the WA Building Bonus $20,000 grant.
Does the HomeBuilder grant apply to first homebuyers only?
No, the good news is homebuyers are still eligible for the HomeBuilder grant and the WA Building Bonus grant, even if they currently own a home or have owned a home in the past.
Do the $25,000 and $20,000 grants include the $10,000 First Home Owners Grant?
No. The HomeBuilder grant and WA Building Bonus grant are completely separate incentives to the $10K FHOG. This means first homeowners could be eligible for up to $55,000 in incentives.
Is there a cap on the value of home I can build?
Yes and no. The HomeBuilder grant only applies to houses with a build value up to $750,000, including land.
However, this cap does not apply to the $20,000 WA Building Bonus.
How soon does construction have to start in order to be eligible?
The WA Building Bonus dictates that construction must start within 6 months of contract signing.
To be eligible for the Federal HomeBuilder Grant, construction must start within 3 month of signing. However, the Federal Government has since relaxed this rule to accommodate delays that are out of the builder’s and your control, such as council approval or finance approval.
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The new government stimulus on residential housing is subject to terms and conditions, with eligibility criteria applying. Please contact us for further information.