Now has never been a better time to build your own home in WA. Loan interest rates are at an all-time low, the National government has provided a $25,000 grant for home building, and on top of that, the WA government is also providing a $20,000 grant for the home building which takes the total available in grants to you up to $45,000. There is a time limit applied to apply for these grants and there are obviously some limitations to who can claim these grants. To find out if you are eligible, and what is available to you, please see the information below.
*This information has been sourced from the Australian Treasury government website and the WA Government website and was correct at the time of publishing. Please check the sources to ensure the facts and terms and conditions have not changed before making any financial decisions
WHO IS ELIGIBLE FOR THE GRANTS?
Please click on the titles below to see the information relevant to each of the grant schemes
NATIONAL HOMEBUILDER GRANT
For access to the information on the New Home Construction Grant, please refer to https://treasury.gov.au/coronavirus/homebuilder for full details, but to summarise all this information and help you understand what is available:
To access the Nationl Grant of $25,000 you will need to either:
- Enter into a contract with your builder of choice to build a new home on vacant land or
- Purchase a new home being constructed under a single-tier strata plan
To access the National HomeBuilder Grant please refer to https://treasury.gov.au/coronavirus/homebuilder
Basically there 6 main criteria you need to be aware of for the national grant
- You are a natural person (not a company or trust);
- You are aged 18 years or older;
- You are an Australian citizen;
- You meet one of the following two income caps:
a. $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
b. $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- You enter into a building contract between 4 June 2020 and 31 December 2020 to either:
a. build a new home as a principal place of residence, where the property value (house and land) does not exceed $750,000; or
b. substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property (house and land) does not exceed $1.5 million
- Construction must commence within three months of the contract date.
WA NEW HOME CONSTRUCTION GRANT
A grant of $20,000 is available for eligible applicants who
- enter into a contract to build a new home on vacant land or
- enter into an off-the-plan contract to purchase a new home as part of a single-tier strata scheme.
The contract must be entered into between 4 June 2020 and 31 December 2020.
If you receive one of these grants, you may still be eligible to receive the first home owner grant.
There is no cap on the purchase price or value of the contract.
Multiple grants can be paid to the same applicant on separate transactions that meet the criteria for each grant.
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HOMEBUILDER & NEW HOME CONSTRUCTION GRANTS FAQS
If you want a bit more information on how the National HomeBuilder and the WA New Home Construction grants work, please have a look through the questions and answers we have compiled for you below.
NATIONAL HOMEBUILDER GRANT
Click on the questions below to see the answer in full. The answers to the questions below are taken directly from Government Treasury website sources and the full fact sheet can be downloaded by clicking this link
WHEN CAN I ACCESS HOMEBUILDER?
HomeBuilder will be available for building contracts signed between 4 June 2020 and 31 December 2020,
where construction or renovation commences within three months of the contract date.
HOW CAN I ACCESS HOMEBUILDER?
You should contact your relevant State or Territory authority on when and how to apply for HomeBuilder.
You will be able to apply for HomeBuilder when the Government of the State or Territory that you live in, or
plan to live in, signs the National Partnership Agreement with the Commonwealth Government.
WHEN WILL I RECEIVE HOMEBUILDER?
HomeBuilder grants will be paid by the relevant State or Territory authority provided the applicant meets
the eligibility criteria.
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:
- If you own a property (house and land), and knock the house down to rebuild – this will be counted as a substantial renovation, and therefore 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 renovation;
- If you own vacant land before 4 June 2020 and then build, the total value of the land and new build cannot exceed $750,000; or
- If you buy the land after the announcement, and then build, the total value of the land and build cannot exceed $750,000.
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 or substantially renovate their existing dwelling. The applicant must also meet the eligibility
requirements outlined above.
IS A HOMEBUILDER GRANT TAXED?
No – a HomeBuilder grant will not be taxed. This is consistent with existing state and territory First Home
Owner Grant programs.
WA NEW HOME CONSTRUCTION GRANT
As above, click on the questions below to see the answer in full. The answers to the questions below are taken directly from the WA Government’s website and can be seen by clicking this link
HOW LONG WILL THE SCHEME OPERATE?
The Building Bonus Scheme starts on 4 June 2020 and ends on 31 December 2020.
WHO CAN APPLY FOR THE GRANT?
Owner occupiers and investors
Australian citizens and foreign persons
Natural persons, corporations and trustees
You do not need to be living in WA to access the grant.
CAN FIRST HOME OWNERS RECEIVE THE $10,000 FIRST HOME OWNER GRANT AS WELL AS THE BUILDING BONUS GRANT?
Yes. First home owners may also be eligible for a transfer duty concession on the purchase of their vacant land or new home.
WILL THE GRANT APPLY RETROSPECTIVELY FOR THOSE WHO HAVE RECENTLY SIGNED A CONTRACT TO BUILD A HOME?
Contracts signed before 4 June 2020 are not eligible for the Building Bonus grant.
