News just in 7th June 2020 from Premier Hon Mark McGOWAN BA LLB MLA.
While restrictions may have started to ease, the economic challenge from the pandemic and the restrictions we needed to put in place remains.
That includes our construction industry, where the pipeline of new projects has slowed dramatically, putting local jobs at risk in the coming months.
If we take action, we can help to mitigate or avoid the potential damage.
But we need your help.
If you have been thinking about building - now is the time to get it underway and support local jobs.
To help get new homes under construction, we're introducing $20,000 Building Bonus grants for any Western Australia to build a new house or purchase a property in a single-tier development already under construction.
The grants will be available until the end of the year, and will not be means tested and have no cap on property value.
They will be on top of the Federal Government's HomeBuilder Grants, as well as WA’s First Home Owner Grants and first home buyer duty concession, meaning someone who qualifies for all four could access up to $69,440 in Government assistance to help build their first home.
Simply put, these grants are about getting as many new projects off the ground as possible, and keeping as many WA jobs intact as we can.
We're also making some changes to the 75% stamp duty rebate we introduced for new multi-tier developments last year.
This new rebate, which is capped at $25,000, will now also apply to newly completed apartments which have not been sold prior to the completion of the development. This rebate is only available to owner-occupiers.
Homebuilder announced by Federal Government
HomeBuilder 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. HomeBuilder will assist the residential construction market by
encouraging the commencement of new home builds and renovations this year.
HomeBuilder is a time-limited grant program to help the residential construction market to bounce back
from the Coronavirus crisis.
HomeBuilder will provide 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 2020 and 31 December 2020. Construction must commence within three months of the contract
HomeBuilder will complement existing State and Territory First Home Owner Grant programs, stamp duty
concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme
and First Home Super Saver Scheme.
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
• you are a natural person (not a company or trust);
• you are aged 18 years or older;
• you are an Australian citizen;
• you meet one of the following two income caps:
$125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
$200,000 per annum for a couple based on both 2018-19 tax returns or later;
• you enter into a building contract between 4 June 2020 and 31 December 2020 to either:
build a new home as a principal place of residence, where the property value does not exceed
substantially renovate your existing home as a principal place of residence, where the
renovation contract is between $150,000 and $750,000, and where the value of your existing
property does not exceed $1.5 million;
• construction must commence within three months of the contract date.
Process and timing
HomeBuilder will be implemented via a National Partnership Agreement, signed by the Commonwealth and
State and Territory governments. This approach will utilise existing state and territory mechanisms to
distribute the HomeBuilder payments.
When the States and Territories begin accepting HomeBuilder applications, they will backdate acceptance
of these applications to 4 June 2020.
Information on when and how you will be able to access HomeBuilder will become available through the
relevant State or Territory revenue office.
If you have never bought property in Western Australia, you may be eligible for the first home owners grant to put towards the purchase of your first home.
The team at First Homebuilders can help you find out if you are eligible for the first home buyers’grant.
What is the first home owner grant scheme?
The FHOG is a once-off payment to help first home buyers with building a residential property when that property will be used as their principal place of residence.
To be eligible for the FHOG and/or first home owner rate of duty, applicants must satisfy the following criteria:
- An applicant must be a natural person (i.e. not a company) and be 18 years or over at the time of making application. However, you may be able to apply for an exemption from the age requirement.
- At least one applicant must be an Australian citizen or a permanent resident at the time of making application.
- Applicants and/or their spouses or de facto partners cannot have previously received the FHOG or first home owner rate of duty from any jurisdiction in Australia.
- Applicants and/or their spouses or de facto partners cannot have previously owned a home anywhere in Australia prior to 1 July 2000.
- Applicants and/or their spouses or de facto partners cannot have previously owned a home anywhere in Australia after 1 July 2000 and occupied that home before 30 June 2004.
- Applicants and/or their spouses or de facto partners cannot have previously owned a home anywhere in Australia after 1 July 2000 and occupied that home for a period of not more than six continuous months commencing after 30 June 2004.
- Applicants must occupy the home as their principal place of residence for a continuous period of at least six months commencing within 12 months of settlement if purchasing a home, or within 12 months from the date of completion if building a home.
- Applicants must hold a relevant interest (ownership) in the land on which the home is situated.
- The applicant must enter into a contract to buy or build (or in case of an owner builder, commence construction) on or after 1 July 2000.
Source: Department of State Revenue
What is considered a new home?
A ‘new’ home is considered to be a property that has never been lived in before by any other party, or sold to another party prior to you. The following are not considered a new home in Western Australia: established houses; acquisition of vacant land (until there is a comprehensive contract to build a residential property on it), business or commercial property, holiday houses, renovations to an existing home.
How can I find out if I am eligible for the FHOG?
The team at First Home Builders can assist you in determining whether you are eligible for the FHOG. Contact us today in order to find out if you are eligible.