HomeBuilder update
The HomeBuilder Grant is administered by the South Australian Government, with funding provided by the Australian Government.
The South Australian Revenue Office is now accepting applications for the Commonwealth HomeBuilder grant.
The HomeBuilder Grant entitles eligible applicants to a none taxable $25,000 contribution to their building project.
Eligibility of Applicants:
All applicant(s) must:
- be a natural person (not a company or trust);
- be at least 18 years of age at time of entering the eligible transaction;
- be an Australian citizen at the time of application (permanent residents are not eligible for the HomeBuilder Grant);
- not have previously received the HomeBuilder Grant in any other Australian state or territory;
- meet the following income tests for the full financial year of either 2018-19 or 2019-20:
- individual applicant: taxable income of less than $125 000; or couples: combined taxable income of less than $200 000.
- own the land at the time a contract is entered into to build, buy or substantially renovate your home, or become the owner of the land on completion of the contract to build or buy the home.
Note: Couples must be a legally married couple, a couple in a registered relationship (as defined in the Relationships Register Act 2016 (SA)), or a de facto couple living in a genuine domestic relationship. More information can be found at the website sa.gov.au/bdm or by contacting 131 882. Applicants may be eligible for the HomeBuilder Grant as well as the South Australian Government’s First Home Owner Grant for the same transaction, if the applicant(s) meet the eligibility of both grants.
Eligibility of the Home:
The home must:
- be located in South Australia;
- be fixed to your land;
- be able to be lawfully used as a place of residence; and
- be a suitable building for use as a place of residence.
Eligibility of the Contract:
- you must enter into a contract to build, buy or renovate between 4 June 2020 and 31 December 2020 (inclusive);
- for an off the plan/new home purchase a sales contract rather than a building contract is eligible, but must meet the other eligibility criteria. Construction can have commenced prior to the date of the sales contract, however commencement must be on or after 4 June 2020.
- the building work undertaken on your home must be undertaken by a person who currently holds a relevant licence as required under the Building Work Contractors Act 1995 (but not an owner builder) and held that licence on 4 June 2020;
- the contract to build, buy or renovate your home cannot include any work undertaken by a related person. ‘Related person’ is defined very broadly and includes your spouse, child, grandchild, sibling, parent, grandparent and collateral relatives (cousins, nieces, nephews, aunts, uncles) as well as any company, trust or partnership in which you, or any of your relatives, are a shareholder, director, trustee, beneficiary or partner;
- no applicant is able to perform work under the contract, whether they are paid or not;
- contracts must be made at arm’s length;
- contract prices must be at market rates and cannot be artificially inflated or deflated; and
- contracts cannot replace a previous transaction entered into before 4 June 2020 that is for the same or substantially similar home (or the same or substrantially similar renovation) and is between substantially, or benefits substantially, the same parties.
Eligibility of transaction:
When contracted to build (house and land package):
- Consideration for the full house and land contract must be $750 000 or less
When contracted to build on land you already own:
- Combined consideration for the building contract and the market value of the land must be $750 000 or less
When contracted to renovate your home:
- Consideration for the contract must be between $150 000 and $750 000 inclusive.
- Market value of the land (including the home) on the date the contract is signed is no more than $1 500 000.
When contracted to purchase an off the plan/new home:
- Consideration for the contract must be $750 000 or less.
Note: If the value of your transaction changes from the amount you have declared on your application, and the new value causes you to breach the above limits, you must notify RevenueSA within 14 days of the date you become aware of the change. If you have already been paid the HomeBuilder Grant and the transaction value exceeds the above limits, you will be required to pay back the HomeBuilder Grant.
Eligibility of substantial renovation:
Substantial renovations can be either:
- making a considerable change to your home; or
- demolishing your home and building a new home on the land.
Substantial renovations are taken to mean that the renovation will:
- substantially alter the existing dwelling (although this need not involve removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircases); and
- improve the accessibility, safety or liveability of the home (or land by building a new home).
Given these requirements, a substantial renovation does not generally include:
- stand-alone granny flats, swimming pools, tennis courts, and structures not connected to the building such as outdoor spas, saunas, sheds or stand-alone garages; or
- renovations that are primarily cosmetic in purpose such as landscaping, painting or recarpeting.
Eligibility based on timing:
New build:
- To qualify for the HomeBuilder Grant, building your home must commence no later than three (3) months after signing the building contract.
- Building is taken to have commenced when site works including excavation for the approved building works to the top of the base level is complete.
- Commencement must be supported by evidence such as a statutory declaration from the builder or a mandatory notification form which is used to notify local councils of stages of work.
Substantial renovations:
- The renovation of your home must commence no later than three (3) months after signing the building contract.
- Building is taken to have commenced when the works under the renovation contract commence.
- Commencement must be supported by evidence such as a statutory declaration from the builder or a mandatory notification form which is used to notify local councils of stages of work.
Off the plan/new home:
- Building of the home must have commenced on or after 4 June 2020 and no later than three (3) months after signing the sales contract.
- Building is taken to have commenced when site works including excavation for the approved building works to the top of the base level is complete.
- Commencement must be supported by evidence such as a statutory declaration from the builder or a mandatory notification form which is used to notify local councils of stages of work.
Eligibility based on residency:
Residency requirements:
- To qualify for the HomeBuilder Grant, you (and any other applicant to your HomeBuilder Grant application) must:
- retain ownership of the property and occupy it as your principal place of residence for a continuous period of at least six (6) months; and
- commence the above period of occupation within 12 months of the date of building or renovation completion.
Meaning of principal place of residence
Principal place of residence has been the subject of case law and is taken to be the place at which you usually eat and sleep the majority of the time and in any case more than at any other place. Leaving personal property at a vacant residence does not meet these conditions.
Note: You must notify RevenueSA and repay the HomeBuilder Grant within fourteen (14) days of the date you become aware you cannot meet the residency requirements. Checks that residency requirements have been met are routinely made by RevenueSA. If you have genuine difficulties or complications in meeting the residency requirements please contact RevenueSA to discuss your situation. Where there are good reasons to do so, the Commissioner has the discretion to:
- extend the twelve (12) month period in which you must commence occupying your home; or
- reduce the six (6) month period for which you must occupy your
home.
For further information on eligibility and the application process, please refer to the HomeBuilder guidelines and application form available on the RevenueSA website.
Also see:
https://www.revenuesa.sa.gov.au/grants-and-concessions/homebuilder-grant/HBG_Factsheet.pdf
https://treasury.gov.au/sites/default/files/2020-06/Fact_sheet_HomeBuilder_0.pdf
https://treasury.gov.au/sites/default/files/2020-07/HomeBuilder_Frequently_asked_questions.pdf
https://www.revenuesa.sa.gov.au/grants-and-concessions/homebuilder-grant/HBGA.pdf
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