The Morrison government will provide grants of up $25,000 for eligible homeowners to build or renovate between June and December 2020.

This time-limited and demand driven program is designed to breathe life into the residential property market, which is facing a prolonged downturn off the back of the COVID-19 crisis.

Treasurer Josh Frydenberg predicts the scheme would support 140,000 direct jobs and another 1,000,000 indirectly, estimating that approximately 27,000 grants would be handed out as part of the package across $10 billion in building projects. It is designed to drive new work for carpenters, plumbers, bricklayers, architects, suppliers, and electricians amid concerns of a 20 per cent drop-off in dwelling investment through the June quarter.

States and territories will be expected to absorb administration costs to implement the HomeBuilder scheme, which will be delivered directly to applicants through state revenue offices.

The grant will not be available to those seeking to build or improve an investment property, and renovations must relate to improving the liveability of a house. It cannot be used for additions such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages.

The building contracts need to be executed between 4 June and 31 December 2020 and work must start within three months of the contract date, all renovations and building work must be undertaken by a registered or licensed building service contractor, who was certified before June 4.

Housing Industry Association managing director Graham Wolfe said the HomeBuilder incentive was the “largest direct contribution to households an Australian government has ever made”.

“The eligibility criteria mean that the vast majority of Australians will be able to access the scheme. More than 80 per cent of households have income of $200,000 or less.”

HomeBuilder applications will be processed once state and territory governments sign-up to a national partnership agreement. States and territories will backdate acceptance of HomeBuilder applications to June 4.

How you qualify

• $25,000 grants paid directly to eligible owner-occupiers (not just first home buyers) to build news homes or substantially renovate existing homes
• Owner-occupiers must apply as individuals, not a company or trust
• Be Australian citizens over the age of 18
• Meet two income gaps – individuals earning under $125,000, couples earning under $200,000
• Enter into building contracts between June 4 and December 31 2020
• Work must commence within three months of the contract date
• If building a new home, it must be as a principal place of residence and valued up to $750,000 (including land)
• If renovating an existing home, it must be a principle place of residence, with renovations valued between $150,000 and $750,000. The home must be valued under $1.5m before renovations
• Building work must be undertaken by a licenced building contractor. The builder cannot be a relative of the property owner
• Renovations can be a combination of works (kitchen, bathroom etc)

What’s not allowed

• Renovations must improve the accessibility, safety and liveability of the home. It cannot be used for swimming pools, tennis courts, outdoor spas and saunas, detached sheds or garages
• Owner-builders and people seeking to build a new home or renovate an existing home as an investment property are ineligible

HomeBuilder Fact Sheet

HomeBuilder FAQ