HomeBuilders Grant Program - updated 30 Nov 2020
Who is eligible?
To be eligible for the $25,000 grant, your circumstances must meet the following criteria:
- you are not a company or trust;
- you are aged 18 years or more;
- you are an Australian citizen;
- you meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- you enter into a building contract between 4 June 2020 and 31 December 2020 to either: build a new home as a principal place of residence, where the property value does not exceed $750,000; or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million; and
- construction must commence within eighteen (18) months of the contract date.
To be eligible for the $15,000 grant, your circumstances must meet the following criteria:
- you are not a company or trust;
- you are aged 18 years or more;
- you are an Australian citizen;
- you meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- you enter into a building contract between 1 January 2021 and 31 March 2021 to either: build a new home as a principal place of residence, where the property value does not exceed $750,000; or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million; and
- construction must commence within eighteen (18) months of the contract date.
How does the process work?
HomeBuilder will be implemented via a National Partnership Agreement, signed by the Commonwealth and State and Territory governments. This approach will utilise existing state and territory mechanisms to distribute the HomeBuilder payments.
The ACT Government has now opened a two-part application process to apply for the grant. This is split into Part A and Part B.
Part A
Part A is the initial registration process for the grant and needs to be lodged by the 14 April 2021. This form will require basic information about yourself and the project, including details of the applicant/s, details about the property, contract details and approximate commencement date.
Part B
This is the more details part of the application and needs to be completed by 31st of October 2022. This response will need to include all the details surrounding the eligibility of yourself, your land, and your project. As such, various aspects of documentation will be required in order to prove eligibility. Details around what ACT Revenue will accept are on their site, links to which are included below.
Important Links
ACT Revenue: https://www.revenue.act.gov.au/covid-19-assistance/homebuilder-grant
Treasury: https://treasury.gov.au/coronavirus/homebuilder
Part A Application Form: https://www.revenue.act.gov.au/covid-19-assistance/homebuilder-registration
Part B Application Form: https://form.act.gov.au/smartforms/servlet/SmartForm.html?formCode=1555
Extensions of Time
Typically, construction must commence within three months after the signing of the contract. However, there can be extensions to this under certain circumstances.
An extension of three months will be given where commencement is delayed due to unforeseen factors outside the control of the parties to the contract. This could include:
- delays in obtaining building 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, and
- natural disaster
In order to apply for this extension, an email request needs to be sent, along with documentation supporting your reasoning, name and reference number to homebuilder@act.gov.au.
More information can be found here, under Eligible Contracts.
FAQs
I want to make changes to an Investment property, will I still be eligible?
The HomeBuilder grant is not available for people seeking to build a new home or renovate an existing home as an investment.
I am interested in building a Secondary Residence, am I eligible?
Builds for Secondary Residences are not eligible for the grant.
What other sorts of projects are not eligible for the grant?
It cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property). Including separate (independent) extension and granny flats.
Is HomeBuilder non-taxable?
Yes, HomeBuilder will be non-taxable - consistent with existing state and territory First Home Owner Grant programs.
When is Part A due?
The Part A Application with ACT Revenue is due on or before 14 April 2021.
Does Part A inform on eligibility?
No, completing Part A does not in any way constitute eligibility for the grant
When is Part B due?
The Part B Application with ACT Revenue is due by the 31st of October 2022.
Does Part B inform on eligibility?
Yes, a response to this application will inform whether or not the application has been approved or denied and will generally be returned within 15 working days.
What time limits apply?
Apart from the due date of applications forms discussed above, HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020 for the $25,000 or 1 January to the 31 March 2021 for the $15,000.
Construction must commence within six (6) months of the contract date.
Who needs to appear on the application forms?
All people on the title must be part of the application
How do I identify block and section of my land?
Block and section can be found using the basic map function on ACTMapi, the ACT Government’s mapping service. This can be found here: http://www.actmapi.act.gov.au/
What is the definition of a start date (for construction) for substantial renovations?
The contract/agreement defines the start date for substantial renovations
Do Extensions constitue definition of substantial renovations?
Yes, extensions and attached additions meet the definition of substantial renovations
What terms should I be aware of when engaging a Builder?
The terms of the contract should be commercially reasonable and the contract price should not be inflated compared to the fair market price.
Renovations or building work must be undertaken by a registered or licenced building service 'contractor' (depending on the state or territory you live in) and named as a builder on the building licence or permit.
The renovation works must be to improve the accessibility, safety and liveability of the dwelling.
Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020.
Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
Have more questions?
Contact our Planning Strategist, either through:
planningstrategy@cgfb.com.au, or
0480 145 239