The Federal Government recently announced its HomeBuilder grant – a $680 million home building package – to help boost Australia’s construction industry during the COVID-19 pandemic.

But what exactly is it, and what does it mean for you?

Aimed at supporting the construction industry, the HomeBuilder scheme will provide eligible owner-occupiers with a $25,000 grant to put towards building their new home or renovating their existing home.

To add to the good news, it’s completely tax free. On top of that, it can also be combined with other existing State and Territory grants and concessions. This includes homeowner programs (such as Victoria’s $10,000 First Homeowner grant), stamp duty concessions and Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Schemes.

For those who are ready to start on their home renovation or build, this can present considerable savings.

So, are you eligible?

To access the HomeBuilder scheme, you’ll need to be an owner-occupier and Australian citizen over the age of 18. You will also have to meet the personal income limits – this means having a maximum income of $125,000 as an individual or $200,000 as a couple.

And what about your project requirements?

First off, you’ll need to sign a contract with a registered builder between 4 June and 31 December 2020.

This contract will need to be for the construction of a new home as a principal place of residence, or a substantial renovation of your existing home. The key here for either project is that it’ll be your home – investment properties are automatically out.

For those of you wanting to renovate, it’ll have to cost between $150,000 and $750,000. Unfortunately, if your current property is valued over $1.5 million, your project won’t be eligible. If it’s a brand-new build, the cost of the land together with the construction cannot exceed $750,000.

Renovations can include anything from major kitchen and bathroom revamps, extensions and solar heating upgrades. Additions that aren’t attached to the property (such as sheds, pools or detached granny flats) won’t be eligible for the grant.

Lastly, construction needs to commence within three months of that contract date. So, if you’re about to sign off to commence your renovation now, you’d have until early November to get the ball rolling with the physical stuff.

So, is it worth building or renovating now?

If you already have plans or ideas in the works, taking advantage of the $25,000 HomeBuilder grant is a no brainer. It can help you stretch your build budget and increase the value of your home.

Plus, not only will the grant help you bring your dream home to life, it’ll also help support the more than one million workers in the sector including builders, painters, plumbers and electricians across the country.

If you are planning to apply, we recommend talking to a builder or design studio (like us!) to find out how an additional $25,000 can focus on improving your planned work.