Government offers $25k grants for housing construction, & renovations

Government offers $25k grants for housing construction, & renovations

The Federal Government announced today it will give eligible Australians $25,000 to build or substantially renovate their homes, in an effort to boost demand in the construction sector and keep builders employed.

Scott Morrison will fire the starter’s gun on a renovation rescue for the economy with $25,000 cash grants for new homes and renos from midnight tonight.

But you will only qualify for the cash splash if you’re spending $150,000 or more on a renovation and you meet an income test, with swimming pools and tennis court projects banned. Josh Frydenberg told reporters who asked “why so much”, said he wanted home owners to have “skin in the game”.

For new home builds, the value of the property must be $750,000 or less.

Speaking on Thursday morning, Mr Morrison said the construction industry was set to “dry up quickly”.

“Some 30,000 homes or thereabouts won’t get built. That means jobs not just for tradies and apprentices but all the other industries that feed into the home building industry and all the jobs that depend on that,” he said.

Mr Morrison said the $25,000 grants would “support those Australians whose dream it was to build their home or to do that big renovation”.

In NSW, that means first home buyers building a new home could get $35,000 in grants to build and stamp duty concessions when the $25,000 grant is combined with existing state schemes.  Queenslanders are looking at $40,000 in grants for first home buyers.  This will help many people get into their first home and on the property ladder.

Applicants for Home Builder must also meet the following two income caps to qualify for the scheme.

  • Singles must be earning $125,000 or less based on their 2018/19 tax return or later.
  • Couples must have a combined income of less than $200,000 based on their tax returns.

The cash splash will be offered for any contracts entered into between 4 June 2020 and 31 December 2020.

That means singles and couples who are currently building a new home will miss out on the cash with the short, sharp stimulus to end on New Year’s Eve.

The grant will be available for existing property owners and first home buyers seeking to build or improve a home or investment property.

Investors and owner builders will be banned from claiming the cash with the scheme designed to help low and middle income earners claim the property ladder.

 Key points:

  • The scheme will give $25,000 grants to eligible homeowners, but recipients will need to spend at least $150,000 of their own money
  • The Government hopes it will ease a predicted downturn in construction demand
  • Labor and the Greens have called for the Government to invest more in social housing

Cooinda Properties has many connections to developers and builders, we are happy to help you with your applications and new home choice.