Skip to main content

What you need to know - Queensland HomeBuilder Grant

August 03, 2020

On 31 July 2020 the Queensland Department of Treasury released its guidelines on the Federal Homebuilder grant.

Treasury QLD released guidance on the HomeBuilder grants and the application forms are available here.

The HomeBuilder grant provides eligible owner-occupiers $25,000 towards the cost of building or buying a new home or substantially renovating an existing home.

From 1 January 2021, a revised version of the grant will become available providing a $15,000 grant for eligible new home projects and major renovations. HIA has developed information to assist members.

Information about the Federal HomeBuilder grant are detailed below.

WORK TYPES COVERED

•  Contract to build (house and land package).
•  Contract to build on land your client already owns.
•  Contract to purchase a new home (off the plan or speculative home).
•  Substantial renovation work, including ‘knock-down rebuild’.

WORK TYPES NOT COVERED

•  Additions to property such as swimming pools, tennis courts, outdoor spas, saunas, sheds or garages (unconnected to property).
•  Stand-alone granny flats.
•  Work carried out by owner builders and investors.

CONTRACTS MUST BE SIGNED BETWEEN

4 June 2020 and 31 December 2020.

If the client/s have entered into a contract on or after 4 June 2020 that replaces a contract made prior to 4 June 2020 to build the same or substantially similar home, they may not be eligible to receive the HomeBuilder Grant.

CONSTRUCTION TIMEFRAMES

Building work must commence within 3 months of the date of signing the contract.

Applications can be made after signing the contract and the documents supporting evidence of commencement may be lodged when commencement of construction and the payment eligibility requirements milestones have been met.

New Builds/Off the plan purchases: Commencement of construction is when excavation and site preparation works begins.

Substantial renovations: Commencement of construction is when works under the renovation contract starts.

EXTENSION OF TIME

QLD Treasury may allow (upon application) for an extension of time for commencement for up to a further 3 months if delays are unforeseen and outside the control of the parties to the contract.

Examples of the criteria for exercising discretion includes, but is not limited to the following:

•  delays in obtaining council approvals;
•  difficulties in obtaining construction materials and/or sub-contractors;
•  inclement weather, where the disruption is substantial;
•  health problems relating to, or the death of, a person critical to the commencement of the project;
•  prolonged industrial disputes;
•  natural disasters.

There are some grounds on which an extension is unlikely to be provided for the following reasons:

•  where an applicant does not undertake appropriate due diligence when entering a contract, or makes deliberate informed choices which make them ineligible without the exercise of the Commissioner’s discretion;
•  where delay results from the builder contracting to undertake more work than they could be reasonably expected to complete in the relevant timeframe; or
•  where construction is delayed because the land developer has set pre-development sales targets that have not been met

EVIDENCE TO SUPPORT COMMENCEMENT

New Builds/Off the plan purchases: Evidence of when construction commenced, including evidence of the progress payment under the contract for the laying of the foundations.

Substantial Renovations: Evidence of when construction began, including the first invoice issued for work carried out under the renovation contract and receipts to show that $150,000 has been paid to your builder.

WHEN WILL THE GRANT BE PAID?

New builds: The grant is paid into your nominated bank account after all the supporting evidence is submitted, including evidence that the foundations have been laid and paid for under a progress payment.

If you have borrowed from a financial institution, you can nominate the payment to go directly to your mortgage account.

Substantial renovations: The grant is paid into your nominated bank account once construction has commenced and at least $150,000 of the contract price for renovations has been paid to the builder.

Off the plan purchases: The grant is paid into your nominated bank account once all the supporting evidence is submitted, including the registration confirmation statement listing you as the owner on title.

CONSTRUCTION CRITERIA

•  Owner-occupied as principal place of residence for at least 6 months after completion.
•  Property must be in Queensland.
•  Property must be fixed to the land (no mobile homes).

APPLICANT

Applicant must be:

•  Natural Person (not a company or trust).
•  18 years or over.
•  An Australian Citizen.

Joint applicants must be married, a couple in a registered relationship or a de facto couple living in a genuine domestic relationship.

INCOME CAPS

For the 2018/2019 or 2019/2020 financial year:

•  $125,000 per annum for an individual applicant.
•  $200,000 per annum for a couple.

IMPLEMENTATION

Queensland Treasury

PROPERTY VALUE CAPS

•  New home $750,000 (including house and land and off the plan).
•  Substantial renovations the existing property not to exceed $1.5 million.

CONTRACT PRICE CAP

•  Contract value for new home not to exceed $750,000 (including house and land and off the plan).
•  Contract value of substantial renovation between $150,000 and $750,000.

BUILDER CRITERIA

All building work must be undertaken by a licenced builder.

TAX

Non-taxable.

TIMEFRAMES FOR APPLICATION

Application must be made after the contract is signed and lodged by 31 December 2020.

INTEGRITY MEASURES

  • Building work for a related parties to the building contract is prohibited.
  • Contracts must be made at arm’s length. This means the contract must be made by two parties acting freely and independently of each other, and without offering favour as a result of some special relationship, such as being related to one another.
  • The terms of the contract should be commercially reasonable, and the contract price should not be inflated compared to the fair market price.
  • Application Form

    The application form for the client/s to complete is available here.

    The client/s will have to provide information about their income, citizenship, certificate of title and building contract, or a copy of the sales contract for the purchase of an off the plan home/new home.

    Contact a HIA Workplace Adviser

    1300 650 620

    or email enquiry@hia.com.au

    Current at: 3 August 2020
    HIA ref no: QFSINP1355