Skip to main content

What you need to know - Victoria HomeBuilder Grant

July 26, 2020

On 24 July 2020, the State Revenue Office Victoria (SRO) released its guidelines on the Commonwealth government’s HomeBuilder grant. The guidelines are available here.

The HomeBuilder grant provides eligible owner-occupiers with a grant of $25,000 to build a new home, substantially renovate an existing home or buy an off-the-plan home/new home. If an applicant demolishes their house to rebuild or if their home was destroyed in the 2019/20 Victorian Bushfires, and they are rebuilding on the existing land, the application will be considered as a substantial renovation.

Detailed below is more information on the grant:

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 applicants 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 Home/Off-the-plan purchases: Commencement of construction means the commencement of excavation and site preparation works. Construction can have commenced prior to the date of the sales contract, however not before 4 June 2020.

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

EXTENSION OF TIME

In light of the introduction of stage 3 and 4 restrictions across Victoria a blanket extension of 3 months to the construction commencement requirement has been granted.

This means that the builder has 6 months from the signing of the eligible contract, to commence construction. The Commissioner does not have discretion to grant any extensions beyond this additional 3 month extension. 

EVIDENCE TO SUPPORT COMMENCEMENT

New Home/Off the plan purchases: Statement from the builder/developer confirming the date that construction commenced.

Substantial Renovations: Evidence of construction commencement, including first invoice issued for work carried out under the renovation contract and receipt/s to show that $150,000 has been paid to the builder.

If applicable, a statement confirming reasons for the delays in construction commencement.

WHEN WILL THE GRANT BE PAID?

New Home: the Grant will be paid after foundations have been laid and the first progress payment has been made to the builder.

Substantial Renovations: After construction has commenced and evidence is submitted showing payments of a least $150 000 of the contract price have been made to the builder.

Off-the-plan purchases: After evidence is submitted showing that the property has been registered in the applicant’s name on the certificate of title. The applicant must be registered on the certificate of title as the owner of the property by no later than 31 October 2022.

CONSTRUCTION CRITERIA

•  Owner-occupied as principal place of residence for at least 6 months after completion, renovation or settlement;
•  Property must be in Victoria; and
•  Property must be fixed to the land (no mobile homes).

APPLICANT

The Applicant must be:

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

Joint applicants must be either married, in a registered domestic relationship, or living as a couple on a genuine domestic basis.

INCOME CAPS

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

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

IMPLEMENTATION

State Revenue Office Victoria.

CONTRACT PRICE CAP

•  Off-the-plan/New Home: The contract price must not exceed $750,000 (inclusive of GST); or
•  Substantial Renovations: The contract price is between $150,000 and $750,000 (inclusive of GST).

PROPERTY VALUE CAPS

•  Off-the-plan/New Home – the value of the house and land must not exceed $750,000; or
•  Substantial Renovations - the value of the existing property must not to exceed $1.5 million.

BUILDER CRITERIA

All building work must be undertaken by a registered building practitioner named as the builder on the building permit. The registration must have been in place prior to 4 June 2020.

TIMEFRAMES FOR APPLICATION

Applications must be lodged no later than 31 December 2020, after the applicant has entered into an eligible HomeBuilder contract.

INTEGRITY MEASURES

•  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

HomeBuilder applications are to be lodged via an online portal.

Contact a HIA Workplace Adviser on 1300 650 620 for further information and advice.

Current at: 27 July 2020
HIA ref no: VFSINP1354