Building grants: an update

Have you heard the good news? Permanent residents, you’ll want to hear this!

This week’s clarification from the State Government confirms the $20K WA Building Bonus grant is available to permanent residents, as well as Australian citizens!

If you’re looking to build in WA, you’ll probably have heard by now that Australian Citizens could be eligible for up to $55K* towards their new home. But if you’re confused by it all and are wondering how this can help you get started in your building journey, you’ve come to the right place. Here’s a quick update on the building grants available and what they could mean for you.

Most recent update:

The recent change by the WA State Government to the WA builder bonus affects who this is available to. Previously, only Australian citizens & Foreign Persons had been advised as eligible…but permanent residents have now been confirmed as eligible too! If you’re a permanent resident, you could be eligible for an extra $20,000 on top of the First Homeowners Grant towards your new home!

In order to receive the WA Building Bonus, you don’t have to be residing in Western Australia or even Australia at the current time. You just have to build a home in Western Australia, and meet the eligibility criteria. There are also no property value limits and no income limits to receive the $20,000 WA Building Bonus grant!

There have been no changes to the Federal Home Builder Grant, so unfortunately this is still only available to Australian citizens.

What other grants are there?

You could receive up to $55K* towards your new home with the various building grants available:

· $20,000* WA Building Bonus Grant

· $25,000* Federal Home Builder Grant

· $10,000^ First Homebuyer Grant

What could this mean for you?

· If you’re an Australian citizen and a first homebuyer, you could be eligible for up to $55,000*.

· If you’re an Australian citizen but not a first homebuyer, you’re looking at up to $45,000*.

· If you’re a Permanent Resident and a first homebuyer, you could be eligible for up to $30,000*.

· If you’re a Permanent Resident but not a first homebuyer, you’re looking at up to $20,000*.

Here’s a handy guide to determine what you could be eligible for.

The fine print.

Federal Government HomeBuilder Grant ($25k)

You’ll need to be:

· Be over 18 years of age.

· Be an individual and not a company or trust.

· Be an Australian citizen.

· Earn less than:

- $125,000 per annum as an individual based on 2018/19 Tax Return or Later

- $200,000 per annum as a couple based on 2018/19 Tax Returns or Later

· Enter into a building contract between 4th June 2020 and 31st December 2020 to either:

- Build a new home valued up to $750,000 (including land value)

- Substantially renovate your existing home with renovations valued at between $150,000 and $750,000 with the dwelling not valued at more than $1.5 million before the renovation.

· Construction of a new home or substantial renovation must commence within three months of the execution of the Building Contract date.

WA State Government Grant ($20k)

The same as the Federal grant, you need to enter into a building contract between 4th June 2020 and 31st December 2020 to be eligible. There is no cap on the purchase price or value of the contract, and this is now open to Australian Citizens, Foreign Persons and Permanent Residents!

^ Eligibility for the First Home Owners Grant is at the discretion of the State Government. For full details go to https://www.wa.gov.au/organisation/department-of-finance/fhog. Importantly, if your house and land value is more than $750,000, the value and location of the build will affect your eligibility for the First Home Owners Grant.

*Information on this page does not consider your personal needs and financial circumstances and you should consider whether it is appropriate for you. Lenders terms and conditions apply and may vary. Eligibility is at the discretion of State and/or Federal Government, further Federal information here and State here. All Financial services provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN: 65 079 545 378 Australian Credit Licence No. 385487. Please refer the relevant State & Federal Government media statement using the below links:

WA State Government: https://www.mediastatements.wa.gov.au/Pages/Default.aspx

This blog post is the intellectual property of ABN Group and is being used on this site solely as a representation of my work.