Great news for Victorian home owners looking to renovate or extend their homes.
The Victorian Government’s new ‘HomeBuilder’ package is detailed below.
WHAT IS THE GRANT?
The HomeBuilder grant is a $25,000 grant for owner occupiers who build new homes or carry out substantial renovation projects.
The incentive will be available to eligible owner occupiers for contracts entered into between 4 June (today) and 31 December 2020.
Building work must commence within 3 months of the contract being signed.
WHAT TYPE OF WORK IS ELIGIBLE?
The new build, home extension or renovation project must be for a principal place of residence with a cap on the combined value of house and land of $750,000.
The value of the home renovation project must be over $150,000, up to $750,000.
The existing home must have a pre-construction valuation that confirms the improved value of the property before work commences is less than $1.5 million.
Renovation projects must be connected to the use of the home as a principal place of residence, e.g. pools, sheds, garages, and the like are excluded.
Renovation projects will need to improve the accessibility, safety and liveability of the dwelling. At this stage, no more details are available on what this may mean.
The works must be under the supervision of a registered or licensed builder.
The builder must demonstrate that the contract price for the new build or substantial renovation is equivalent to the cost of comparable building work on 1 July 2019.
WHO IS ELIGIBLE?
Eligible owner occupiers with an income of up to $125,000 for singles and up to $200,000 for couples, along with the other requirements of the First Home Loan Deposit Scheme that apply to Australian citizens and age.
It will not be available to companies or trusts, those who are not Australian citizens or people under 18 years of age.
Owner builders and investment property work will also not be eligible for the incentive.
HOW WILL THE GRANT BE GIVEN?
The grant will be administered by each State & Territory revenue office. The grant will be paid directly to the owner occupier by the office of revenue after the first progress payment.
The grant will complement the existing first home owner grant programs in each state and territory, along with any stamp duty concessions and other grant schemes that are made available to homeowners. The grant will also be available to anyone accessing the First Home Loan Deposit Scheme for a new home.
HIA Managing Director, Graham Wolfe says, “The HomeBuilder package will support the delivery of tens of thousands of new home and renovation projects.”
“The HomeBuilder incentive is the largest direct contribution to owner occupier housing construction that an Australian government has ever made. Today’s announcement reflects the importance of the home building industry and the role the industry plays in generating jobs and economic activity.”
More information will be available soon from Treasury Coronavirus Economic Response website.
Feel free to chat with any of the Duncan Thompson Extensions staff about your home extension project and how this may affect you.
Phone: 03 9836 8655 or write us a message