Big News Confirmed! Australian Government Launches Unprecedented Property Stimulus Grant Scheme

The biggest and latest property news of the year!

Effective immediately!

The Morrison Government will begin implementing its new property cash grant scheme from 12:00 am on 4 June, providing a A$25,000 cash grant for newly built homes and renovated older homes.

Eligible applicants:

1. At least 18 years old and an Australian citizen;

2. Purchasing a new home or renovating an older home

3. Singles with an annual income of no more than A$125,000, or couples with a combined household income of no more than A$200,000

Homes meeting the following conditions can apply for this grant:

1. The price of the newly built home must not exceed A$750,000 (including the land price);

2. For a renovated older home, the total renovation cost must be between A$150,000 and A$750,000, and the value of the home must not exceed A$1,500,000;

3. Renovation works do not include: swimming pools; tennis courts; outdoor spas; saunas; and value-adding to property unrelated to the main residence, such as sheds and garages.

Prime Minister Scott Morrison said HomeBuilder will save jobs. He said: “This is about targeted taxpayer support for a limited time using existing systems to ensure the money gets used effectively by families looking for that extra bit of help to make significant investments themselves.” He said: “If you’ve been putting off that renovation or new build, the extra A$25,000 we’re putting on the table, along with record-low interest rates, means now is the time to get started.”

There are three different buyer situations in total:

First-home buyer + House & Land buyer 

    - Total price under A$750,000

    - Land price under A$350,000, stamp duty fully waived (normally A$11,820 in stamp duty)

    - Land price under A$450,000, stamp duty partially reduced

    - First-home buyer grants vary by state; please check the relevant government website for details

Maximum grant: A$36,820 + first-home buyer grant

House & Land buyer

    - Total price under A$750,000

Maximum grant: A$25,000

Owner renovating a home

    - Renovation cost A$150,000–A$750,000

    - Home value before renovation under A$1,500,000

Maximum grant: A$25,000

The application period is also limited: contracts must be signed between 4 June and 31 December 2020. Construction is also required to commence within three months of signing the building contract.