How to get $25,000 cash to renovate your home
HOME buyers and renovators wanting to take advantage of a $25,000 government grant have just under seven months to act from today, as the Morrison Government unveils the economic heart-starter for the ailing construction industry.
Anyone building a new home - not just first homebuyers - or doing a substantial renovation, from today will be able to claim the cash.
It means a first homebuyer will be able to access a combined $40,000 if they also access the existing State Government First Home Owner's grant.
The $688 million plan is a desperate bid to save and support up to 1 million tradies jobs and other workers, as the industry lurches towards an economic cliff in September, as the pandemic lockdown sees contracts rapidly drying up.
The HomeBuilder scheme is intended to be running within weeks, but any application will be able to be backdated to June 4 to ensure contracts can be entered into from today.
Contracts must be signed by December 31 and work has to begin within three months of the signing to be eligible.
Prime Minister Scott Morrison said the grants would "fire up" the construction industry, after many had been forced to lean on JobKeeper during the crisis.
"If you've been putting off that renovation or new build, the extra $25,000 we're putting on the table along with record low interest rates means now's the time to get started," he said.
Only individuals earning up to $125,000, or couples earning a combined salary of $200,000, will be eligible.
New homes being built must be worth $750,000 or less, including land, while renovations must be worth at least $150,000 but no more than $750,000.
The high minimum threshold is intended to stop dodgy contractors in a "pink batts" style scandal, by requiring the scale of the works to require licenced builders, who have held their licence from before today.
People seeking a bit of luxury, while others struggle without a job, will also be locked out. The money will not be allowed to go towards swimming pools, tennis courts, outdoor spas and saunas, sheds or garages.
It will require the State Government to come on board, signing a national partnership to agree to distribute the cash on behalf of the Commonwealth.
Treasurer Josh Frydenberg construction was the number one industry covered by JobKeeper.
"The HomeBuilder program will support residential construction activity and jobs across the industry at a time when the economy and the sector needs it most," he said.
The package has already been praised by the construction industry, as details leaked out during the week.
Master Builders Queensland boss Grant Galvin said a package, working with the State Government, could "save the industry falling off a cliff".
Master Builders Australia CEO Denita Wawn said giving the scheme a limited time-frame would give builders and tradies certainty, just as much of their existing work was drying up.
"We're staring down no work. If contractors and builders don't get certainty they will have to start making hard decisions," she said.
Originally published as How to get $25,000 cash to renovate your home