Homebuyers grant: How much money you will get from new scheme

Homeowners will be offered grants of around $25,000 to build new homes or renovate what they’ve already got – but there’s a catch.

Homeowners will be offered grants of around $25,000 to build new homes under a new stimulus plan, but renovators will have to match the “free” cash by more than a dollar for dollar.

Designed to protect tradies’ jobs in the wake of the coronavirus pandemic the final details of the scheme will be announced his week.

But news.com.au has confirmed the requirement that renovators demonstrate substantial spending means smaller, DIY projects will be locked out of the Prime Minister’s renovations bonanza to ensure the money supports tradies’ jobs.

Renovators will not just be required to match the cash grants but spend more, ensuring the projects are “substantial”.

“We are more interested in the larger projects and new home builds and things like that,” Prime Minister Scott Morrison told 2GB on Monday morning.

“We are looking at a bit of drop off in that current home building that’s going on. That’s not good for tradies and not good for jobs.”

As a result of the reno rules, while a substantial kitchen or bathroom renovation that provides work for plumbers and carpenters may fit the bill, a more modest paint job or flatpack kitchen may not qualify for the scheme.

“The tradies and all the others – the apprentices and others who work in that home building sector are going to feel a lot of pain unless we can keep a continuity in the business with house construction,” Mr Morrison said.

Australian Prime Minister Scott Morrison will pay out to save tradies. Picture: AAP Image/Lukas Coch

The Prime Minister is considering a grants scheme that more than doubles existing state rebates on offer to families in NSW for new home builds.

Treasurer Josh Frydenberg was coy on the details but senior government sources have confirmed to news.com.au that a figure of around $25,000 is “in the ballpark”.

That amount is lower than the proposals of $40,000 to $50,000 in grants proposed by the Master Builders Association and the Housing Industry Association.

The Morrison Government also wants to extend the grants to people who may have owned property before considering a new build.

Federal treasurer Josh Frydenberg is expected to announce details later this week. Picture: AAP Image/James Ross

In NSW, grants for first home buyers building a new home currently stand at $10,000 on property worth no more than $750,000.

But the schemes differ from state to state and currently already stand at $20,000 for new home builds in Tasmania.

The Morrison Government is expected to announce the final details of the scheme on Wednesday or Thursday.

The Prime Minister is keen to use existing first homebuyer schemes already established in each state to deliver the grants.

That means the same limits on the value of the family homes that are eligible for the scheme are likely to apply which will prohibit wealthy buyers using the grants to purchase million-dollar homes.

Big renovation projects will be funded, little ones won’t be so lucky. Picture: iStock

In most states, that’s a home worth less than $750,000.

The original First Home Owner Grant (FHOG) scheme was introduced by John Howard on July 1, 2000 to offset the effect of the GST on home ownership.

In Queensland, the First Home Owners’ Grant has previously paid $15,000 towards buying or building your new house, if it was valued at less than $750,000.

In Victoria, a $10,000 First Home Owner Grant is available for contracts signed from July 1, 2017 to June 30, 2021. Homes must be worth less than $750,000.

In WA, a $10,000 first homeowner grant is also available and stamp duty concessions are also on offer.

In Canberra, the FHOG is currently worth $7000 and it applies to a new or substantially renovated home. The total value must be $750,000 or less

In the Northern Territory, eligible homeowners can access the $10,000 first homeowner grant to buy or build a new home, a discount of up to $24,000 in stamp duty on an established home, a $10,000 home renovation grant or a $2000 grant to buy household goods.

Labor has called for the Morrison Government to announce support for the housing sector urging the PM to “hurry up” before more jobs were lost.