Updated 17th of July, 2020 (scroll down)
You might have heard the recent news from the Federal Government regarding a building grant for new homes, but are you familiar with the details? For everything you need to know, read on.
The HomeBuilder Grant was introduced by the Federal Government to give those looking to build a kickstart towards their dream home. It is for anyone looking to build, not just first home buyers, provided you are eligible (see below!) While some final details are still waiting to be confirmed, here’s a look at what we do know:
Who is eligible?
- Private individuals (not companies or trusts)
- Anyone who is an Australian citizen
- People aged 18+ years
- “Owner Occupiers” – people who intend to live in the new build as their home for at least 12 months
- When you sign a build contract between the 4th of June 2020 to the 31st of December 2020
Are there any extra conditions?
- The homes must cost under $750,000 including the cost of the land
- You must also meet an income cap, earning under:
– $120,000 a year as an individual based on 2018/19 tax return or;
– under $200,000 a year as a couple based on 2018/19 tax return
- Construction must start within 3 months of the date the contracts are signed
How do I apply?
Revenue SA will be distributing the grants for South Australia – individuals will need to apply directly through their office.
What else do I need to know?
Depending on your circumstances, you may also be eligible for the SA State Government funded First Home Owner Grant of $15,000 however, the total price of the home must also be under $575,000.
6 months to organise your build can seem daunting, but at Lofty we’re here to help. Whether you already have land or need to purchase we will happily assist no matter what stage you are at. We can provide you advice on land, location, design and everything in between to streamline the process for you.
We’ve already adapted our internal processes to ensure we can deliver your build to site on time to do our part to assist in your eligibility. We’re now signing contracts later while still giving you a fixed price quote to give you peace of mind while meeting the grant criteria.
17 July, 2020 Update
Revenue SA have today announced they are now accepting applications for the HomeBuilder Grant!
What do we know that’s new?
When & How the Grant will be paid
For new builds, Revenue SA have specified the grant will be paid “after construction has commenced and evidence is submitted which shows that the first progress payment has been made to the builder”. It will be deposited straight into your nominated bank account (must be an Australian savings or cheque account.)
Potential discretion to provide extensions
Revenue SA have also provided some extra clarification around possible extensions if, for unforeseen and uncontrollable circumstances, builders and clients are unable to get to site within 3 months from the contract being signed.
They have outlined a number of delays and circumstances they may consider reasonable to provide an extension to, including:
- delays in obtaining council approvals;
- difficulties in obtaining construction materials and/or sub-contractors;
- delays in financial institutions assessing and approving finance;
- inclement weather, where the disruption is substantial;
- health problems relating to, or the death of, a person critical to the commencement of the project;
prolonged industrial disputes;
- significant delays in the issue of title caused by the Lands Titles Office; or
They have also flagged they are unlikely to provide an extension in these circumstances:
- where an applicant does not undertake appropriate due diligence when entering into a contract, or makes deliberate and informed choices which make them ineligible without the exercise of the Commissioner’s discretion;
- where delay results from the builder contracting to undertake more work than they could be reasonably expected to complete in the relevant timeframe; or
- where construction is delayed because the land developer has set pre-development sales targets and insufficient blocks have been pre-sold in a subdivision.
This provides extra clarity and confirmation around some of the finer details of the grant – a welcome addition for builders and clients alike!
To apply for the grant, or find out more detailed information, you can go directly to the Revenue SA website by clicking here.
For further information on the Lofty process and the difference our approach makes to the HomeBuilder grant, or general information about the grant itself, please don’t hesitate to reach out to us – call us today on 8266 0011 or click here to Get in Touch!