The government has a new housing grant called HomeBuilder with $25,000 to eligible homeowners, but you could more than double this! Read on…

Prime Minister Scott Morrison unleashed a home reno dream, announcing grants of up to $25,000 to build new homes and refurb existing houses.

Mr Morrison said it was now time to get building to drag the country out of its COVID-19 induced recession with the new HomeBuilder grant.

“This investment isn’t just about helping Australians bring their dream home to life, it’s about creating jobs and helping support the more than one million workers in the sector including builders, painters, plumbers and electricians across the country,” the Prime Minister said.

First home buyers could get even more by adding the HomeBuilder grant to incentives already offered by both the Commonwealth and the Tasmanian governments.

To qualify for HomeBuilder, you need to be spending more than $150,000 on a renovation. If you’re building a new home it has to be worth less than $750,000, or if you are renovating an existing property it needs to have been previously valued at less than $1.5 million.

The works must improve the accessibility, safety and livability of the dwelling. No grants for additions to the property that are unconnected to the residence such as tennis courts, outdoor spa, pools.

Applicants for HomeBuilder also need to 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 grant is only available until New Year’s Eve.

In addition there is also the Commonwealth’s First Home Loan Deposit Scheme.

This guarantees mortgages for first home buyers who have as little as a 5 per cent deposit. The government stands as guarantor for the remaining 15 per cent, which effectively helps them buy sooner without paying lenders mortgage insurance premiums, which can add up to $10,000.

On top of that is the First Home Super Saver Scheme, which allows you to save up to $30,000 for your first home inside your super fund. But as that’s your own money we’re not going to count it.

Tasmania’s first homeowner’s grant: Up to $20,000

Commonwealth first Home Loan Deposit Scheme: Up to $10,000

With HomeBuilder, how much can I access? Up to $55,000

You will be able to apply for HomeBuilder when the Tasmanian Government signs the National Partnership Agreement with the Commonwealth Government. Information on when and how you will be able to apply will become available through the relevant State or Territory revenue office in due course.

Any big catches? Available for a newly built or to be built residence.

Anything else? Tassie provides a 50 per cent discount on property transfer duty for first home buyers of established homes, which have a dutiable value of $400 000 or less.