Home Builder Stimulus Package
ScoMo is at it again!
In a further round of stimulus, the treasury have today (04/06/2020) announced a $25,000 cash grant for new home construction & major renovations.
Who gets it?
A normal person (No companies or trusts)
Over 18 years old
Taxable income of $125,000 or less as a single or $200,000 or less as a couple on your 2019 or soon to be 2020 tax return.
Owner Occupied (No Investment Properties)
Building or Renovation contract dated between 04/06/2020 > 31/12/2020
Construction to commence within 3 months of contract date (Registered land)
Residential only (House, apartment, house and land, off-the-plan, etc)
$750,000 price cap (House & Land)
If you already own land without a house, you are still eligible but the total value can't exceed $750,000
Renovations must have a building contract of at least $150,000 but no more than $750,000. DIY renovators will miss out here.
Renovations can't lead to the dwelling (house and land) exceeding 1.5 million in value.
Renovations must improve accessibility, liveability, and or safety. They are specifically ruling out Tennis courts, Pools & Sheds.
Renovations must be completed by a licensed or registered builder and at arm's length (No Family jobs)
How do you apply?
Applications will be done through the relevant state body. In NSW for example that will be Revenue NSW. Details on this exact process are as yet unavailable but all applications will be backdated to 04/06/2020.
First Home Owners
This $25,000 grant will complement all existing First Home Owner arrangements with your state body along with all commonwealth assistance programs.
Scenario - First Home Owner (Single) enters into a house and land package contract worth $650,000 on 10/06/2020 in Western Sydney. They will be eligible for up to $66,028 in savings via all the following.
$25,000 Grant as per above
$10,000 first homeowner grant from Revenue NSW. Info HERE
Full Stamp Duty exemption (saving of $25,028)
$6,000 tax saving (on average), assuming you took advantage of the First Home Super Saving Scheme. Info HERE
For further reading, check out the treasury website HERE