Homebuilder grant extension
The Federal Government is extending the construction commencement requirement for the successful HomeBuilder program from 6 months to 18 months for all existing applicants, bringing the total level of expected Government support for the construction sector under the program to $2.5 billion.
The Government’s decision to provide existing applicants with an additional 12 months to commence construction responds to unanticipated delays in the construction industry caused by COVID-19 related supply constraints including delays in global supply chains and recent natural disasters.
The extension will only apply to existing applicants and provide an additional 12 months to commence construction from the date that the building contract was signed. All applicants who signed contracts during the HomeBuilder eligibility period between 4 June 2020 and 31 March 2021 will have this extension applied to them.
Applications closed on the 14th of April, however, applicants have until 30 April 2023 to submit all supporting documentation (such as invoices for work done, and proof that construction has started) to their State or Territory Revenue Office.
More information on HomeBuilder can be found on the Victorian State Revenue Office website.
First Home Super Saver Scheme
The Federal Government has expanded the First Home Super Saver Scheme (FHSSS) to increase the maximum amount of voluntary contributions that can be released from the FHSSS from $30,000 to $50,000, effective from 1 July 2022.
The scheme was introduced by the Australian Government in the Federal Budget 2017–18 and allows individuals or couples to save money for their first home inside their super fund.
Those wishing to use the scheme must apply for and receive a FHSS determination from the ATO before signing a contract for the first home or applying for the release of your FHSS amounts.
You have 12 months from the date you make a valid release request to sign a contract to purchase or construct your home or recontribute the assessable FHSS amount (less tax withheld) into your super fund.
You can use this scheme if you are a first home buyer and both of the following apply you either live in the premises you are buying or intend to as soon as practicable. You must be 18 years old or older and never owned property in Australia to request a determination or a release of amounts under the FHSS scheme.
Superannuation guarantee contributions made by your employer, and spouse contributions cannot be released under the FHSS scheme.
For more information on the scheme please see visit the ATO website on the scheme.
Downsizer contribution
From 1 July 2022, the minimum age for the downsizer contribution will be lowered from 65 to 60, allowing Australians nearing retirement to make a post-tax contribution of up to $300,000 per person when they sell their family home. This is available if you sign a contract to sell your home on or after 1 July 2018 and you meet the eligibility requirements.
For details of the eligibility requirements and further details around timing of the contributions see the following ATO publication.
New Home Guarantee – First Home Loan Deposit Scheme (FHLDS)
The Federal Government has also announced that another 10,000 places will be added to the First Home Loan Deposit Scheme (FHLDS) from 1 July 2021 to 30 June 2022, which will only be available for those buying or building new homes. FHLDS (New Homes) places allow first home buyers to purchase a new property with a deposit of as little as 5%.
Usually, first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase or build a new home with a deposit of as little as 5 per cent (lenders criteria apply). This is because National Housing Finance and Investment Corporation (NHFIC) guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.
For details on eligibility, the property price thresholds in each state and how to apply see the following fact sheet.
Family Home Guarantee
The Federal Government has announced a new program called the Family Home Guarantee, which provides eligible single parents with dependants the opportunity to build a new home or purchase an existing home with a deposit of 2 per cent, subject to the individual’s ability to service a home loan.
From 1 July 2021, 10,000 Family Home Guarantees will be made available over four financial years.
The Family Home Guarantee is aimed at single parents with dependants, regardless of whether that single parent is a first home buyer or previous owner-occupier. Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000.
For details on eligibility, the property price thresholds in each state and how to apply see the following fact sheet.
