Definitions for HomeBuilder grant
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The following definitions explain certain terms related to the HomeBuilder grant in a simple way. This will help you determine your eligibility and understand your obligations when applying for this grant.
More information and definitions are available in the administrative direction and in the application form. Where there is a difference between the definitions here and the administrative direction, the administrative direction applies.
If commencement of construction is delayed due to factors that are unforeseen and outside of the control of the parties to the contract, the Commissioner of State Revenue may grant a 3-month extension to allow for late applications.
- 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.
The Commissioner is unlikely to grant an extension when:
- an applicant does not undertake appropriate due diligence when entering a contract, or makes deliberate informed choices that make them ineligible
- delay results from the builder contracting to undertake more work than they could be reasonably expected to complete in the relevant timeframe
- construction is delayed because the land developer has set pre-development sales targets that have not been met.
To seek an extension, you still need to submit your application for the grant by 31 December 2020. You can apply for an extension when you provide your supporting evidence.
A contract is at ‘arm’s length’ when it is 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 deflated or inflated compared to the fair market price.
Where parties are related to each other, the applicant may be required to show that the transaction is at a fair market price. This could be done, for example, by obtaining a professional opinion from another builder, as to the value of the construction work.
You must be an Australian citizen at the time of applying for the grant. If applying as a couple, you must both be Australian citizens.
Permanent residents and citizens of other countries are not eligible.
Comprehensive building contract
A contract with a licensed builder to build a home, from commencement to completion of construction so that it is ready for occupation.
In relation to:
- building a home—the date excavation and site preparation work began
- buying a home—the date excavation and site preparation work began
- renovating an existing home—the date building work began
- demolishing and building a home (combined contract)—the date demolition work began
- demolishing and building a home (separate contracts)—the date building work began under the contract to build
You are part of a couple if you are one of the following:
- legally married
- in a registered domestic relationship
- living as a couple on a genuine domestic basis.
A home that has not been lived in or sold previously. Construction must have commenced on or after 4 June 2020.
In general, a market appraisal is something that an owner obtains from a valuer or real estate agent to ascertain the value of their property. The Commissioner will generally accept a written market appraisal from a registered valuer or real estate agent who are able to support their opinion with at least 3 recent comparable sales in the last twelve months.
If it is not possible to give at least 3 recent comparable sales, for example, because the residential property is located in an area where sales are infrequent, the Commissioner will consider the evidence of market value submitted. Further corroboration may be required based on factors like the location of the property, the type of property and the interval between sales.
An off-the-plan purchase is a single contract to buy a new home and the interest in the land, which is a proposed lot on an unregistered plan resulting from a subdivision. In some cases, the property may not have been built yet. For example, the purchase of a unit in a unit block, where the unit’s individual lot and plan description will not be available until the strata title has been registered.
You do not have an off-the-plan contract to purchase if you have both a vacant land contract and a building contract.
Registration confirmation statement
This is the document that proves that you were recorded as the registered owner(s) of the property at the time you acquire it. Contact the Titles Registry for a current title search (to show you own the property) if you don’t have this document.
A substantial renovation alters an existing dwelling to make the property more livable and improve its accessibility or safety.
It also includes demolishing an existing home and building a new home on the land.
For the HomeBuilder grant:
- the value of property before renovation (house and land) must be less than $1.5 million
- the contracted renovations cost between $150,000 and $750,000.