HomeBuilder: Who is eligible for $25,000 grants under the new home building scheme

The federal government will fund grants for home renovations and builds under a $688 million stimulus package.

The HomeBuilder scheme is expected to facilitate between 25,000 and 30,000 builds and renovations.

Under the scheme, eligible singles and couples will receive grants of $25,000 to facilitate home builds or renovations carried out by the end of the year.

Singles must earn under $125,000 a year, while couples must earn under $200,000, to be eligible for the grant. Those applying for the scheme must be owner-occupiers.

New properties must not be valued at more than $750,000, including the land cost, to be eligible, while renovations on existing properties must be valued at between $150,000 and $750,000 to qualify.

Existing properties cannot be valued at more than $1.5 million prior to renovation.

Renovations which receive the grant must improve the liveability or safety of the home, and cannot be used for pools, tennis courts, spas and saunas, or garages.

Treasurer Josh Frydenberg this morning shot down criticism that the building stimulus scheme is too narrow.

“We’re confident that this will stimulate activity, particularly at a time when the housing industry, which is about 5 per cent of GDP … is going to go through a tough period as people put their hands in their pockets following the coronavirus,” he told Tony Jones, filling in for Neil Mitchell.

“It’s going to lead to between 25,000 and 30,000 new builds or significant renovations.”

Press PLAY below for the full interview.