Understanding the HomeBuilder initiative


The HomeBuilder is a program initiated by the Federal Government to help stimulate the residential construction sector as it contends with the economic impacts of COVID-19.
The program provides eligible applicants with a $25,000 grant to help build a new home or renovate an existing home. The program is also tax-free.

Who is eligible?

To be eligible for HomeBuilder, you need to be an owner-occupier who is building or renovating a home,and meet the following criteria:
  • You are an Australian citizen aged 18 or over, you can’t access it through a company or trust
  • Your annual income needs to be less than $125,000 for individual applicants, or less than $200,000 for a couple based on your 2018-19 tax returns or later.

Additional criteria

To apply for the HomeBuilder you must also meet the following criteria:
  • You are building a new home as a principal place of residence, where the property value does not exceed $750,000; or
  • You are substantially renovating 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 (pre-renovation)
  • The contract must be signed between 4 June 2020 and 31 December 2020 and construction must commence within three months of the contract date
  • Your building/renovation is not for investment purposes
  • Your building/renovation is not for companies and trusts who own residential property.

More on renovations

For those considering renovations, the following rules also apply:
  • You must used a licensed builder (no DIY)
  • No grants will be given for property additions that are not connected to the main residence, for example, pools, sheds, granny flats, outdoor spas and saunas, tennis courts, or garages are ineligible

Can I use the HomeBuilder with other grants?

The HomeBuilder grant can be used in conjunction with other federal and state grants such as the First Home Owners Grant and the First Home Loan Deposit Scheme.  State grants, exemptions and incentives can also be used in conjunction with the HomeBuilder program.  You will need to check with your lender or mortgage broker regarding the timing of payments as the HomeBuilder may not be able to be used as part of settlement (in the way that the First Home Owners’ Grant can be).

Can I use the HomeBuilder as part of my deposit?

Currently it looks unlikely that you will be able to use HomeBuilder towards your initial deposit, primarily because we don’t yet know when the HomeBuilder will be paid. The relevant State or Territory revenue office will distribute the $25,000 grant directly to the applicant but there is no clear guidance on the timing of this payment yet – so for now, it won’t help with your deposit.

How to apply

You will be able to apply for HomeBuilder via the relevant State or Territory Government that you live in, or plan to live in.  Please note, all states and territories are now signatories to the HomeBuilder National Partnership so this grant is available Australia-wide.  Please refer to the relevant State and Territory websites below:
QLD: www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/homebuilder
NSW: www.revenue.nsw.gov.au
VIC: www.sro.vic.gov.au
TAS: www.sro.tas.gov.au
WA: www.finance.wa.gov.au
SA: www.revenue.sa.gov.au
NT: www.treasury.nt.gov.au

More information

For more information please contact the Infocus Lending Advisory team or get in touch with your financial adviser.  You may also like to read the FAQs provided by the Federal Government for more information.


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