2020 Government Building Grants


By Al Jafri – Progeny Building Group
Posted 12 June 2020

Owning your dream home has become a step closer with the recent Federal Government stimulus. As the impact of COVID-19 is being felt across all industries in the world, the Federal Government has recently thrown a lifeline to the home construction industry by implementing measures to stimulate activity in the sector in a bid to boost the economy.

There is a lot of confusion as to who qualifies for the package, what the funds can be used for and when it will be paid. This article will dissect the relevant information in a systematic manner and answer the frequently asked questions that we have had since the announcement.

That $25,000 can be accessed on top of any existing grants or exemptions. 


NSW Allowance of up to $45,000

  • On top of the new HomeBuilder grant of $25,000, NSW first-home buyers already have access to a $10,000 grant for new properties costing less than $600,000 and owner-builder/building contracts worth less than $700,000.
  • If you’re buying land to build a new home, the total price – including the land and home – must be no more than $750,000.
  • There is also no stamp duty payable on property under $650,000, or vacant land under $350,000, while properties between $650,000 to $800,000, or vacant land between $350,000 to $450,000 get discounted stamp duty.
  • That’s a saving of up to $24,740 on a $650,000 home.

What is HomeBuilder? 

In response to the economic downturn resulting from COVID-19, the Federal Government has introduced a tax-free grant to stimulate the residential construction sector. This package is called “HomeBuilder” and will provide eligible applicants with a cash grant to help build a new home or renovate an existing home.

Are you eligible for HomeBuilder?

To determine eligibility, the following criteria is required to be met:

  • You need to be an owner-occupier;
  • You need to be building or renovating a home;
  • You are an Australian citizen aged 18 or over;
  • You are purchased or have purchased the property as an individual, not through a company or trust; and
  • Your annual income is less than $125,000 for individual applicants, or less than $200,000 for a couple based on your 2018-19 tax returns or later.

Does your home qualify for HomeBuilder?

You qualify for HomeBuilder if:

  • you are spending more than $150,000 when renovating;
  • you are building a new home and its below the national cap of $750,000;
  • You are renovating an existing property it needs to be valued at less than the national price cap of $1.5 million;
  • The building works improve the liveability, accessibility or safety of your home.

Grants are not available for property additions that are not connected to the main residence, such as pools, outdoor spas and saunas, tennis courts, detached granny flats, sheds or garages.

We also note that owner-builders and those looking to build a new home as an investment property or renovate an existing investment property are not eligible.

What types of homes are eligible?

The following types of dwellings are eligible for the scheme:

  • Houses;
  • Apartments;
  • house and land packages;
  • off-the-plan purchases.
    but the owner-occupier must be building a new home or significantly renovating an existing home.

Applicants must also meet the income eligibility test.

Do you need to be a first-home buyer?

You do not need to be a first-home buyer to receive the grant.

Can you buy house and land packages?

Yes, provided you satisfy the criteria mentioned above.

Can investors get HomeBuilder?

No. Owner-builders and those looking to build a new home as an investment property or renovate an existing investment property are not eligible. The grant is also only available to owner occupiers.

What builders can you use?

Builders must be registered or licensed, as the case may be, in the state or territory where the home will be built or renovated, such as Progeny.

What if you own land but haven’t signed a contract with a builder?

If you own a property (ie house and land) and plan to knock the house down to rebuild, this will be considered a substantial renovation and subject to the renovation price range of $150,000 to $750,000 provided the value of the house and land isn’t greater than $1.5 million.

If you own the vacant land prior to June 4 or purchased after June 4 and then build, the total value of the land and the new build cannot be greater than $750,000.

Is the HomeBuilder grant taxed?

No, the grant is tax-free.

When can you access HomeBuilder?

To be eligible for the $25,000 grant you must enter into a building contract between June 4, 2020 and December 31, 2020.

Construction must commence within three months of the contract date.

How can I access HomeBuilder?

You need to contact the relevant authority in NSW. The acceptance date of applications will be backdated to June 4.

What proof or documents do I need to provide when applying?

To apply you will need the following:

  • Proof of identity.
  • A copy of the contract dated and signed by the applicant and the nominated registered or licensed builder.
  • A copy of your builder’s registration or license, depending on state or territory requirements.
  • A copy of your 2018-19 tax return or later to illustrate your eligibility under the income cap.
  • Documents such as council development approvals, building contracts, occupation certificates and evidence of land value.

How will you know if my application is successful?

The relevant state or territory authority will notify you of the outcome.

Can HomeBuilder be used in conjunction with other grants?

HomeBuilder was not designed to be used in isolation. Other grants in NSW include:

State first homeowner’s grant: $10,000

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

With HomeBuilder, how much can I access? Up to $45,000

Are there any catches? First home that is newly built and no one else has lived in previously up to a value of $750,000.

What else do I need to know? First home buyers in NSW are exempt from paying all or some stamp duty on homes valued up to $800,000.

Where can I get more info? Go to the NSW Government’s first homebuyer website.


We hope this information has clarified the assistance that you can receive under the new government scheme. Now is the time to take the next step in adding value to your family home or developing that block of land. Contact us today so we can create the dream home that you envisage.


  • Custom designs suited to your block and designed from scratch;
  • Incorporating quality materials;
  • Cost price upgrades;
  • Price matching policy;
  • Turnkey packages to suit your budget;
  • A unique customer experience from commencement all the way through to post-completion;
  • Economical solutions and luxury designer packages.


Progeny Building Group
Progeny Homes