Dean Morrison - June 11, 2020
The Arden Homes team is committed to educating our customers – this is an important step in making the customer experience exceptional for all buyers.
Understanding the new HomeBuilder grant can be daunting, so we’ve done our best to break it down, answer your questions and make it easy to follow.
What is HomeBuilder?
HomeBuilder is a time-limited, tax-free grant program to help the residential construction market to get through the Coronavirus pandemic.
HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home.
When can I access HomeBuilder?
HomeBuilder will be available for building contracts signed between 4 June 2020 and 31 December 2020.
How can I access HomeBuilder?
You will be able to apply for HomeBuilder when the Victorian Government signs the National Partnership Agreement with the Commonwealth Government.
When will I receive HomeBuilder?
HomeBuilder grants will be paid by the Victorian State Revenue Office provided the applicant meets the eligibility criteria.
Am I eligible to receive HomeBuilder?
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
Is there a limit to how many people can get homebuilder?
No. HomeBuilder is an uncapped, time-limited grant.
I already own land but haven’t signed a contract to build a new house – am I still eligible?
Yes, if you meet the following criteria:
What types of dwellings are eligible under HomeBuilder?
All dwelling types (house, apartment, house and land package, off-the-plan, etc) are eligible under HomeBuilder, in accordance with the requirement that the owner-occupier must contract to build a new dwelling. The applicant must also meet the eligibility requirements outlined above. A knockdown rebuild is considered to be new build so it meets the criteria subject to contract value.
What are the price caps associated with HomeBuilder?
HomeBuilder is subject to two prices: a contract price cap (for new builds and knock down rebuilds) and an income cap for applicants.
Contract price cap
A national price cap of $750,000 will apply for new home builds. This means that the value of new builds (house and land), house and land packages, and off-the-plan purchases must not exceed $750,000 to be eligible for HomeBuilder.
For knockdown rebuilds, a building contract price range of between $150,000 and $750,000 will apply and the total value of your property before renovation must not exceed $1.5 million.
Income price cap
Eligible applicants must meet one of the following two income caps:
The income price cap, as well as the eligibility criteria for the applicant, were chosen to reduce complexity as they align with the Commonwealth Government’s First Home Loan Deposit Scheme.
Is a HomeBuilder grant taxed?
No – a HomeBuilder grant will not be taxed. This is consistent with the Victorian First Home Owner Grant program.
I am not a first home buyer – can I still access HomeBuilder?
Yes. Provided you meet the eligibility criteria, you can apply for a HomeBuilder grant. However, HomeBuilder is not available for investment properties or to owner-builders.
How do I apply?
You will be able to apply for HomeBuilder through the Victorian State Revenue, once the Victorian State Government signs the National Partnership Agreement.
You should contact your relevant State or Territory revenue office for more information about when and how you will be able to apply for HomeBuilder.
What documentation will I need to provide?
We anticipate the Victorian State Revenue Office will require the following documents to process your application:
When will I know if my HomeBuilder application is successful?
The Victorian State Revenue Office will notify you of the outcome.
What happens if my HomeBuilder application is not successful? Can I appeal? Who should I appeal to?
If you are dissatisfied with the outcome of your HomeBuilder application, you can request that the matter is referred to the State Revenue Office dispute resolution body.
More information on the appeals process will become available in due course.
What happens if there is a change in circumstance and I’m no longer eligible?
If your circumstances change after you have applied for HomeBuilder but have not yet received the payment, and no longer meet the eligibility criteria, you will need to notify the State Revenue Office immediately.
Who pays HomeBuilder and who receives it?
The Victorian State Revenue Office will distribute the $25,000 grant directly to the applicant.
What integrity measures is the Federal Government implementing?
HomeBuilder is subject to strict eligibility criteria, price caps and income caps to manage demand and support residential construction activity.
Owner-builders and those seeking to build a new home or renovate an investment property are ineligible for HomeBuilder.
The registered or licensed builder (depending on the State or Territory) must demonstrate that the contract price for the new build or knockdown rebuild is no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser.
In addition, any building contract entered into must be at arm’s length. This means the contract must be made by two parties independently of each other and without some special relationship, such as being a relative. The terms of the contract should be commercially reasonable, and the contract price should not be inflated compared to the fair market price.
Important information for First Home Buyers
In addition to HomeBuilder, first home buyers may also be entitled to the Victorian First Home Owner Grant and stamp duty concessions as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
In Victoria, If you are building a new home valued up to $750,000, you may be eligible for a First Home Owner Grant (FHOG). If you are eligible for the FHOG and the home you are buying is in regional Victoria, you will receive $20,000. If the home is not in regional Victoria, the grant is $10,000.
To find out more about about the FHOG in Victoria, click here.
Explore our build locations here.
Important information for your Knockdown Rebuild
If you own a property (house and land), and knock the house down to rebuild, this will be counted as a substantial renovation, and will therefore be subject to the renovation price range of $150,000 to $750,000 – provided the total value (house and land) of the property does not exceed $1.5 million pre-renovation.
How Arden Homes can help
As well as obtaining the new HomeBuilder grant, you can receive a range of bonus upgrades as part of our Stand Out from the Crowd promotion.
For a limited time, we’re removing site preparation costs and demolition costs and giving you free luxury extras like COLORBOND® roofing, Hebel render and so much more, at no additional cost. This means whether you’re looking to buy land and build new, or start a knockdown rebuild, there are so many upgrades on offer.
Award-winning, architect-influenced homes focused on space and light. We offer genuine design flexibility - contact us to find out more. #ardenhomes