This article is being updated as new information is announced.
The McGowan Labor Government on Sunday announced an extra $444 million housing stimulus package aimed at supporting the building and construction sectors for Western Australia. This package includes $177 million for the $20,000 Building Bonus grants.
“While it may mean that some people on some higher incomes may be the beneficiaries, the main point of it is to get people back to work, to get apprentices on the job, to keep trainees there and to get more people employed,” Mr McGowan told reporters on Sunday. “You can always consider means-testing and perhaps in a non-pandemic environment that’s what you’d do but … we need to get building happening.”
How much is the grant?
Who is eligible for the Building Bonus grant?
A grant of $20,000 is available for –
- Homebuyers who are looking to build or purchase a new property in a single-tier development (such as townhouses, house and land projects).
- Owner-occupiers and investors
- Australian citizens and foreign persons
- Natural persons, corporations and trustees
Please note: You do not need to reside in WA to access this grant.
What types of properties are eligible for the grant?
- New detached homes constructed under a building contract
- New relocatable homes
- New homes constructed by an owner-builder
- New single-tiered homes on strata plans such as villas and townhouses. For more information regarding these types of properties, click here.
What properties don’t qualify for the grant?
- Properties in multi-tiered developments such as an apartment tower. These properties may qualify for an off-the-plan duty rebate
- Mixed-use and commercial property
- Short stay accommodation
- New constructions where there is already a building on the land, for example, adding a granny flat to the backyard of the person’s home
- Refurbished property and developments, including where the original property is extended or renovated. Substantial renovations may qualify for the Commonwealth Government’s HomeBuilder scheme
- A building contract or contract for the purchase of property that the Commissioner is satisfied was cancelled to allow a new contract to be made for the purpose of qualifying for the grant
- Completed dwellings (existing stock) held by the developer or another person
Is the Building Bonus grant paid on top of the existing grants and schemes?
Yes, the Building Bonus grant will be paid on top of the existing Federal and State grants and schemes currently available. This also includes the HomeBuilder grant announced by the Federal Government last week.
When can I access the Building Bonus grant?
- Immediately. The Building Bonus grant is available for building contracts that are signed between the 4th of June 2020 until the 31st of December 2020. Construction must commence within 6 months of entering into the contract.
- If you are an owner-builder, you must commence construction of the new home on your land between the 4th of June 2020 and the 31st of December 2020.
- You must provide evidence that the construction has commenced, which is when the laying of the foundation for the home is completed.
How can I apply for the grant?
You can apply for the grant once construction has commenced (when the foundations have been laid). An application form will be available on the WA Government’s website here.
Is the grant means tested?
The Building Bonus grant will not be means tested and there will be no property value caps, meaning anyone wanting to build or purchase new can take advantage.
Is the Building Bonus grant available to investors?
Yes, the Builder Bonus grant applies to investors as well as owner-occupiers.
Is this different from the “Off-the-Plan Duty Rebate Scheme”?
Yes. The Off-the-Plan Rebate Scheme promotes investment in the WA residential multi-tiered apartment market and stimulates jobs in the construction industry by providing a rebate of duty paid on eligible unit or apartment purchases. Visit here to find out more information about this scheme.
Got any questions?
If you have any questions regarding this grant, building new or renovations, get in touch with the iBuildNew team.