The ACT government has launched a two-step process for those wishing to access the new HomeBuilder grants, as more states begin opening applications.
The federal government recently reached an agreement with all states and territories to administer its $688-million HomeBuilder scheme, with all states and territories becoming signatories to the HomeBuilder National Partnership.
However, not all states and territories have begun accepting HomeBuilder applications as yet.
NSW, Queensland, Victoria and the Northern Territory are not yet accepting applications but the governments have stated that HomeBuilder applications will need to be lodged via an online portal on their respective revenue office sites in due course. These portals will be available shortly (according to Queensland state government, its online application form will be available in “early August”, for example).
Tasmania was the first state to announce that it had commenced accepting applications for the HomeBuilder grants, with South Australia and Western Australia also now accepting applications.
ACT has also now announced its process for application.
The ACT government has outlined a two-part application process for those wishing to access the Commonwealth grant through the ACT Revenue Office website.
Applicants will need to complete Part A by registering their interest for the HomeBuilder scheme by 31 December 2020 in order for their application to be considered. Those who register their interest will be advised of updates to application forms and supporting materials.
A “comprehensive application form” will then be available for applicants to complete Part B of the application, the update said.
This form will require detailed information about the applicant, their builder, type of construction, as well as detailed supporting documentation.
In Western Australia, Revenue WA has announced that it is accepting a joint application form for both the HomeBuilder grant as well as WA’s Building Bonus grant of $20,000. Home builders and investors in the state can apply for up to $45,000 in government grants.
The state grant is available to eligible applicants who enter into a contract to build a new home on vacant land or enter into an off-the-plan sales contract to purchase a new home as part of a single-tier development on a strata plan or other land survey type.
The HomeBuilder package
The HomeBuilder package provides eligible owner-occupiers, including first home buyers, with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June and 31 December 2020.
A national price cap of $750,000 applies for new home builds, while a renovation price range of between $150,000 and $750,000 has been set for renovating an existing home with a current value of no more than $1.5 million.
Construction need not commence prior to 31 December 2020, however, must commence within three months of the contract date (a maximum extension of an additional three months may be provided by on a case-by-case basis if delayed due to unforseen factors). Further, construction cannot have commenced before 4 June 2020.
Recent data from REA Insights have shown that since the announcement of the HomeBuilder package, there has been an 11.2 per cent increase in enquiries for vacant residential land in June. This followed a 36.6 per cent increase in May.
First home buyers led the rush in enquiries for land, which skyrocketed by 177.8 per cent in June.
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Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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