- 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.
Other than the above, the existing program criteria applies. That is, the other existing eligibility criteria remains in place and the $25,000 grant will still be made available for eligible contracts signed on or before 31 December 2020.
HomeBuilder grant guidelines
On 29 November 2020, the Australian Government announced an extension to the HomeBuilder program to 31 March 2021, with a number of changes to the grant amount and eligibility criteria.
- 4 June 2020 – 31 December 2020 – enter into a contract between these dates to build a new home, substantially renovate an existing home or buy an off the plan home/new home to be eligible for the $25,000 grant
- 1 January 2021 – 31 March 2021 – enter into a contract between these dates to build a new home, substantially renovate an existing home or buy and off the plan home/new home to be eligible for the $15,000 grant
- 14 April 2021 – all applications, irrespective of when the eligible contract was signed, must be submitted within the HomeBuilder application portal by this date. If you started an application before this date you have until midnight on 30 April 2023 to upload your supporting documents to the portal.
HomeBuilder Applications
The $25,000 Grant application form and lodgement guide and $15,000 Grant application form and lodgement guide are provided as a guide to assist in preparing your application for lodgement via the online portal
Applications for HomeBuilder closed at midnight Wednesday, 14 April 2021.
Applicant(s) can lodge their application in a multi-step process with the initial lodgement being after an eligible HomeBuilder contract has been entered into.
Once commencement of construction and the payment eligibility requirements milestones have been met, any additional supporting documentation should be lodged via the online portal.
Eligibility criteria
Eligible applicants
HomeBuilder is available to individual applicants and couples who are or will be registered as the owner on the certificate of title. If you are the only person who is listed, or will be listed, on the certificate of title as owner of the property, you must apply as an individual applicant. If there is, or will be, more than one person listed on the certificate of title, they must jointly apply as a couple provided, they meet the definition of ‘couple’. Each applicant must be:
- a natural person (not a company or trust)
- aged 18 years or older at the date of the contract
- an Australian citizen.at the date of application.
When you must be registered on the certificate of title as the owner of the land or property depends on the type of contract you enter into:
- For contracts to build, you must be registered on title as owner of the land by no later than the laying of foundations and the first progress payment is made to the builder.
- For substantial renovations, you must be registered on the title as owner of the property at the time that you enter into the contract for renovation works.
- For off the plan/new homes, you must be registered on the title as owner of the property when the building is completed, and you are entitled to take possession of the home.
HomeBuilder is only open to Australian citizens. Accordingly, permanent resident and/or visa holders are not eligible. Where two people are listed on the certificate of title as registered proprietors, they must apply for HomeBuilder as a couple and both applicants must meet the eligibility criteria, including the citizenship requirement.
Applicant(s) must be below one of the following two income caps
- $125,000 per annum for an individual based on either your 2018-19 or 2019-20 taxable income, as shown on your notice of assessment issued by the Australian Taxation Office or
- $200,000 per annum for a couple based on either your combined 2018-19 or 2019-20 taxable income, as shown on your notices of assessment issued by the Australian Taxation Office.
A couple is considered as two people that are legally married, in a registered domestic relationship, or living as a couple on a genuine domestic basis, excluding people related to each other, for example, siblings.
Each applicant must not have previously received the HomeBuilder Grant for any property owned individually or jointly with another person in any Australian State or Territory.
Each applicant must live in the home as their principal place of residence for a continuous period of at least six months on completion of construction, renovation or settlement.
Investment properties are excluded from HomeBuilder.
Eligible homes
The home must be:
- located in New South Wales
- fixed to your land
- suitable as a place of residence, and
- owned, or will be owned, by you (both dwelling and land).
A home is only eligible to receive the HomeBuilder Grant once.
Eligible contracts signed between 4 June and 31 December 2020
A $25,000 HomeBuilder Grant is available for one of the following contracts signed between 4 June 2020 and 31 December 2020(inclusive):
- a comprehensive home building contract to build a new home as your principal place of residence where the value (house and land) does not exceed $750,000 (inclusive of GST)
- a contract with a registered builder to substantially renovate your principal place of residence where the renovation contract is between $150,000 and $750,000 (inclusive of GST), and where the value of your existing house and land does not exceed $1.5 million. If you own a property (house and land) and demolish the house to rebuild, or your home was destroyed during the 2019/20 NSW bushfires, these will be treated as a substantial renovation, subject to the same values.
Note: For a demolition and rebuild to be treated under the substantial renovation category, both the demolition and rebuild must occur on or after 4 June 2020. If the demolition occurred before 4 June 2020 (i.e the property is vacant land as at that date), the contract to build will be treated under the comprehensive home building contract category.
- a contract to purchase an off the plan home/new home as your principal place of residence where the contract price does not exceed $750,000 (inclusive of GST) and construction had not commenced prior to 4 June 2020.
In all cases, construction cannot have commenced before 4 June 2020.
Construction must be undertaken by a registered or licenced building service `contractor’ who is named as a builder on the building licence or permit. Where an eligible contract is signed between 4 June 2020 and 28 November 2020, the registered builder or developer must have a valid licence or registration before 4 June 2020. Where an eligible contract is signed between 29 November 2020 and 31 December 2020, the registered builder or developer must have a valid licence or registration before 29 November 2020. In all cases, a valid copy of the builder’s licence or registration needs to be provided to the applicant showing a licence or registration date. A copy of the builder’s licence or registration will need to be provided as part of your supporting documentation for the HomeBuilder Grant.
Eligible Contracts signed between 1 January 2021 and 31 March 2021
A $15,000 HomeBuilder Grant is available for one of the following contracts signed between 1 January 2021 and 31 March 2021 (inclusive):
- a comprehensive home building contract to build a new home as your principal place of residence where the value (house and land) does not exceed $950,000 (inclusive of GST)
- a contract with a registered builder to substantially renovate your principal place of residence where the renovation contract is between $150,000 and $750,000 (inclusive of GST), and where the value of your existing house and land does not exceed $1.5 million. If you own a property (house and land) and demolish the house to rebuild, or your home was destroyed during the 2019/20 NSW bushfires, these will be treated as a substantial renovation, subject to the same values.
Note: For a demolition and rebuild to be treated under the substantial renovation category, both the demolition and rebuild must occur on or after 4 June 2020. If the demolition occurred before 4 June 2020 (i.e the property is vacant land as at that date), the contract to build will be treated under the comprehensive home building contract category.
- a contract to purchase an off the plan home/new home as your principal place of residence where the contract price does not exceed $950,000 (inclusive of GST) and construction had not commenced prior to 4 June 2020.
In all cases, construction cannot have commenced before 4 June 2020.
Construction must be undertaken by a registered or licenced building service `contractor’ who is named as a builder on the building licence or permit. Whether the contract is with a licenced or registered builder or developer, they must have held their licence or registration prior to 29 November 2020. In all cases, a valid copy of the builder’s licence or registration needs to be provided to the applicant showing a licence or registration date prior to 29 November 2020. A copy of the builder’s licence or registration will need to be provided as part of your supporting documentation for the HomeBuilder Grant.
Owner-builders are not eligible for HomeBuilder. An owner-builder means the person who takes legal responsibility for domestic building work carried out on their own land/property. Owner-builders therefore do not enter into an eligible HomeBuilder contract.
For off the plan home/new home contracts, construction can have commenced prior to the date of the sales contract, but not before 4 June 2020. You must also be registered on the certificate of title as the owner of the property by no later than 30 April 2023.
In negotiating the contract, the parties must deal with each other at arm’s length. This means the contract must be made by two parties freely and independently of each other and without some special relationship, such as being a relative. The terms of the contract should be commercially reasonable, and the contract price should not be inflated or deflated compared to the fair market price.
If you 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, you may not be eligible to receive the HomeBuilder Grant.
Construction must commence within 18 months of the contract date.
When construction is considered to have commenced will depend on the type of contract that you enter into:
| For new builds | commencement excavation and site preparation works |
|---|---|
| For a substantial renovation | when the works under the renovation contract commence |
| For an off-the-plan build | commencement excavation and site preparation works |
Eligible substantial renovations
Substantial renovation can be either:
- substantially altering the existing dwelling, or
- demolishing your home and building a new home on the land.
Note: For a demolition and rebuild to be treated under the substantial renovation category, both the demolition and rebuild must occur on or after 4 June 2020. If the demolition occurred before 4 June 2020 (i.e. the property is vacant land as at that date), the contract to build will be treated under the comprehensive home building contract category.
To be considered substantial:
- the renovation does not need to involve the removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircases).
- However, it should improve the accessibility, safety or liveability of the property,
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.
Bushfire affected properties
If your home was destroyed in the 2019/20 NSW Bushfires, and you are rebuilding on your existing land, your application will be considered as a Substantial Renovation.
The 2019/20 NSW Bushfires are defined as:
- North Coast bushfires from 18 July 2019 onwards in a region as listed as a Natural Disaster Declaration by the Office of Emergency Management
- NSW bushfires from 31 August 2019 onwards in a region as listed as a Natural Disaster Declaration by the Office of Emergency Management
To assist applicants who have been affected by Bushfires, Revenue NSW will accept in place of a valuation from a bank or licenced independent valuer, the latest available land valuation issued by the NSW Valuer General. This may be accessed from the Valuer General website for free.
In addition to the above we would also require bushfire affected applicants to provide evidence that their home was bushfire affected, such as a letter from their insurance company to show that their home was affected by a natural disaster or other evidence provided by a Government Agency to support the home was bushfire affected.
Valuing Farming Property
Where the land or property subject of the HomeBuilder application is a farming property, the Commonwealth is supportive of the states and territories adopting a practical approach that only takes into account the value of the house/dwelling that is situated on the farming property.
Accordingly, for owners of genuine farm land who reside on their land, where the valuation of their entire property (house and land) would likely exceed the relevant HomeBuilder property value cap, they can provide the following alternative documents as part of their application:
- an independent valuation of the house/dwelling only on the basis of its replacement cost/value and the rate notice for the land, or
- relevant insurance documents showing the insured replacement value of the dwelling and the rate notice for the land.
If you want your property valued on the above basis, you should provide a brief covering letter as part of your supporting documents that confirms your property is a genuine farming property. Such matters will be considered on a case by case basis and we may request additional documents from an applicant in order to determine whether the farming property meets the relevant HomeBuilder property value cap.
HomeBuilder payment
HomeBuilder will be paid once Revenue NSW is satisfied that you meet all the eligibility criteria. The timing of the payment of the Grant will depend on whether your application relates to:
- A new build – the Grant will be paid after foundations have been laid and the first progress payment has been made to the builder
- A substantial renovation – the Grant will be paid after construction has commenced and evidence is submitted showing payments of at least $150,000 of the contract price have been made to the builder
- An off the plan home/new home contract – the Grant will be paid after evidence is submitted showing that the property has been registered in your name on the certificate of title. You must be registered on the certificate of title as the owner of the property by no later than 30 April 2023.
Homebuilder will be paid into your nominated account when all eligibility criteria have been met and all supporting documentation provided. This account must be an Australian account (e.g. a savings account, a loan account, a cheque account).
Residency requirement
To qualify for HomeBuilder, each applicant 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 immediately on completion of construction, renovation or settlement.
A principal place of residence is considered to be the home you primarily reside in.
Where an applicant was a member of the permanent forces of the Australian Defence Force and the applicant was enrolled on the NSW electoral roll at the date of the eligible HomeBuilder contract, then the applicant is exempt from the residence requirement.
To receive the exemption, you must provide a document issued by the Australian Defence Force clearly showing your name and that you are a member of the permanent forces at the date of the eligible HomeBuilder contract.
An exemption will not be granted if the document is not provided.
What should you do if you cannot meet the above residency requirements?
You must notify Revenue NSW and repay the HomeBuilder Grant within 14 days of the date you become aware you cannot meet the residency requirement.
Revenue NSW may require that applicants provide information to verify that they have met the residence requirement. Applicants should keep appropriate records that can demonstrate to Revenue NSW that the grant address was used as the principal place of residence.
If you have difficulties in meeting the residency requirement, please contact Revenue NSW to discuss your situation.
Supporting documentation for Eligible Contracts signed between 4 June 2020 and 31 December 2020
Supporting Documentation for Eligible Contracts signed between 1 January 2021 and 31 March 2021
Application outcome
Revenue NSW will write to applicants advising whether their application has been approved or declined, generally within 15 working days of a complete application being received.
What can I do if my application is not approved?
You may lodge an objection if your HomeBuilder Grant application is declined and you do not agree with the Chief Commissioner’s decision.
Objections must be lodged within 60 days of the date of the letter advising you of the decision and must include the reasons why you believe the decision is incorrect.
Objections cannot be made on the grounds of perceived fairness but should focus on the facts as to why you consider the decision is wrong, having regard to the HomeBuilder eligibility criteria. Objections should be emailed to [email protected]
More information
The Australian Government has provided an information about HomeBuilder.
You can contact our HomeBuilder team:
- Email: [email protected]
- Phone: 1300 753 822 (8:30am to 5pm, Monday to Friday)
HomeBuilder Compliance
Revenue NSW audits all HomeBuilder applications for compliance with the eligibility and residency criteria. Should Revenue NSW contact you during an audit, it is a condition of receiving HomeBuilder that you must provide all information requested.
You must advise Revenue NSW within 14 days if you cease to use the property as your principal place of residence within 6 months of completion of construction or settlement.
You may be required to repay HomeBuilder if:
- you do not provide all the information requested by Revenue NSW during an investigation;
- you provide false or misleading information to Revenue NSW; or
- Revenue NSW finds you should not have received the HomeBuilder or you did not meet the principal place of residence requirement.
Definitions
Applicant(s)
Each person whose name is or will be on the certificate of title must be an applicant for the grant.
The HomeBuilder Grant is only available to individual applicants and couples. If you are the only person listed on the certificate of title as the owner of the property, you must apply as an individual applicant. If there is more than one person listed on the certificate of title, they must apply jointly as a couple, provided they meet the definition of a couple in the relevant State or Territory.
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.
Australian citizen
All applicant(s) must be Australian citizens.
Commencement of construction
In relation to a new home, commencement of construction will be commencement excavation and site preparation works
In relation to a substantial renovation, commencement of construction is when works under the renovation contract commence.
In relation to an off the plan purchase, commencement of construction will be commencement excavation and site preparation works
Couple
Two people that are legally married, in a registered domestic relationship, or living as a couple on a genuine domestic basis, excluding people related to each other, ie siblings.
Contract to build
A comprehensive building contract where a builder agrees to build a home, from commencement to completion of construction so that it is ready for occupation
Income cap
$125,000 per annum for an individual or $200,000 per annum for a couple based on either the 2018-19 or 2019-20 taxable income
New home
A contract for the purchase of a home that has not previously been sold or occupied as a place of residence and where construction commenced on or after 4 June 2020
Off the plan
A contract for the purchase of a home on a proposed lot in an unregistered plan of a subdivision of land, i.e. the purchase of a unit before it is built or before the strata plan is registered, and where construction commenced on or after 4 June 2020
Owner
The person or person(s) listed on the certificate of title of the freehold property.
Partner
A person is a partner of another if they are in a registered domestic relationship or living as a couple on a genuine domestic basis.
Principal place of residence
The home you primarily reside in.
Spouse
A person is a spouse of another if they are legally married to each other.
Substantial renovation
The renovation substantially alters the existing dwelling and improves the accessibility or safety or liveability of the property.
If you own a property (house & land) and knock the house down to rebuild this will be counted as a substantial renovation, so long as both the demolition and rebuild occur on or after 4 June 2020. If the demolition occurred before 4 June 2020 (i.e. the property is vacant land as at that date), the contract to build will be treated under the comprehensive home building contract category.
Examples of renovation work that does not qualify includes, standalone granny flats, swimming pools, tennis courts, and structures that are not connected to the property (i.e. outdoor spas, saunas, sheds or standalone garages).
Value
In relation to a new build, off the plan home/new home the value of the property (i.e. house and land) cannot exceed $750,000 (inclusive of GST) for contracts signed between 4 June 2020 and 31 December 2020 and $950,000 (inclusive of GST) for contracts signed between 1 January 2021 and 31 March 2021.
In relation to a substantial renovation the value of the home (i.e. house and land) prior to renovation cannot exceed $1.5 million.
