Renovated houses and the first home owner grant

You may be eligible for the Queensland First Home Owners' Grant if you are buying a substantially renovated home (including the land on which it is situated) where:

  • the sale of the home is a taxable supply as a new residential premises that was an established home that had a substantial renovation
  • the renovated home has not been previously occupied or sold as a place of residence.

This means that:

  • the home must be substantially renovated before you buy it and has not been lived in since the renovation
  • the seller must give you a statement that shows the GST component of the renovation (as evidence that the sale is a taxable supply).

Substantial renovations

A substantial renovation is when all, or most, of the structural or non-structural components of a building are removed or replaced.

Most of the rooms in the building must have been affected, and the renovations must have affected the building as a whole for it to be considered a substantial renovation.

Substantial renovation

Non-substantial renovation

Structural building work such as:

  • replacing or altering foundations
  • replacing or altering floors or supporting walls (interior and exterior)
  • lifting or modifying roofs
  • altering brickwork to replace existing windows and doors

Non-structural building work such as:

  • repairing electrical wiring
  • replacing or altering non-supporting walls (interior and exterior)
  • plastering or rendering an entire wall or walls
  • plumbing (e.g. replacing pipes)

Cosmetic work such as:

  • painting
  • sanding floors
  • replacing light fittings
  • replacing curtains
  • replacing carpets

Non-substantial renovations

A home has not been substantially renovated if:

  • only cosmetic work has been done to the home (e.g. painting)
  • only one part of the building has been renovated (e.g. renovation of one bedroom in a 4-bedroom house; removal and replacement of a kitchen and bathroom with little else being done to the building, apart from minor repair work).