Following the Morrison Government’s announcement of the HomeBuilder scheme on 4 June 2020 (which we first wrote about here), Revenue NSW released a sample application form and lodgement guide on 26 July 2020 to assist eligible owner-occupiers with the preparation of their HomeBuilder applications.
Eligibility criteria
Following on from the eligibility requirements outlined in the Government’s initial announcement, applicants must:
- own the land at the time a contract is entered into to build or substantially renovate your home; or
- become the owner of the land on completion of the off-the-plan contract to build or buy the new home by no later than 31 October 2022.
Also, each applicant must not have previously received the 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.
Eligible contracts
The HomeBuilder grant is available for one of the following contracts signed between 4 June 2020 and 31 December 2020:
- a comprehensive home building contract to build a new home as your principal place of residence where the property value (house and land) does not exceed $750,000;
- 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; or
- a contract to purchase an off-the-plan or new home as your principal place of residence where the contract price does not exceed $750,000 and construction had not commenced prior to 4 June 2020.
In all cases, construction must not have commenced before 4 June 2020 and must be undertaken by a registered or licenced building service contractor who is named as a builder on the building licence or permit. As such, owner-builders are not eligible to receive the HomeBuilder grant.
If construction has commenced, the grant will only be available depending on the approved works under the following forms of contract:
- for new builds (including off-the-plan builds) – commencement of excavation and site preparation works
- for a substantial renovation – when the works under the renovation contract commence.
Where construction is delayed due to unforeseen factors outside the control of the parties to the contract, a maximum extension of an additional three months may be provided.
HomeBuilder payment
The HomeBuilder grant will be paid once Revenue NSW is satisfied that you meet all the eligibility criteria. The timing of the payment will depend on the type of contract 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 have been made to the builder; or
- an off-the-plan or new home contract – the grant will be paid after evidence is submitted showing that the property has been registered in your name. You must be the registered owner of the property by no later than 31 October 2022.
HomeBuilder applications
HomeBuilder applications are to be lodged via an online portal, which is available on the Revenue NSW webpage. Applications must be lodged by no later than 31 December 2020 and can be lodged in a multi-step process.
Once commencement of construction and the payment eligibility milestones noted above have been met, any additional supporting documents should be uploaded via the online portal.
Supporting documents that will need to be submitted as part of your application will depend on the type of contract your application relates to and will include:
- all applications:
- a copy of your birth certificate or current Australian passport, or Australian citizenship certificate
- evidence of a change of name (e.g. change of name certificate, statutory declaration) is required if the name on any of the documents presented is different to the name of the applicant
- copy of either the 2018-19 or 2019-20 Notice of Assessment issued by the Australian Taxation Office for each applicant, or evidence of nil tax return or non-lodgement advice if not required to lodge a tax return.
- new build:
- copy of the Certificate of Title for the property
- copy of the comprehensive home building contract signed between 4 June 2020 and 31 December 2020
- copy of the front and execution pages of the contract for sale of land if less than 12 months from the date of your application. If more than 12 months, a copy of valuation undertaken by a bank or licenced independent valuer
- evidence showing that foundations have been laid and copies of both invoice(s) and receipt(s) show the first progress payment has been made to the builder
- evidence of construction commencement (copy of the notice of commencement as required under the Environmental Planning & Assessment Act)
- If applicable, a statement setting out the reasons for the delays in construction commencement with supporting evidence.
- substantial renovations:
- copy of the Certificate of Title for the property
- copy of the building contract for substantial renovations signed between 4 June 2020 and 31 December 2020
- copy of valuation from a bank or licenced independent valuer to show the value of the property (house and land) within the three months before commencement of renovation
- evidence of construction commencement, including the first invoice issued for work carried out under the renovation contract and receipt(s) to show that $150,000 has been paid to the builder
- if applicable, a statement setting out the reasons for the delays in construction commencement with supporting evidence.
- off-the-plan or new home:
- copy of the Certificate of Title for the property
- copy of the front and execution pages of the sales contract for the purchase of an off-the-plan or new home signed between 4 June 2020 and 31 December 2020
- evidence of construction commencement (copy of the notice of commencement as required under the Environmental Planning & Assessment Act)
- if applicable, a statement setting out the reasons for the delays in construction commencement with supporting evidence.
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.
If your application has been declined, you may lodge an objection via email to objection@revenue.nsw.gov.au which must include the reasons why you believe the Chief Commissioner’s 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 must be made within 60 days of the date of the letter advising you of the decision.
HomeBuilder compliance
Revenue NSW will audit all HomeBuilder applications for compliance with the eligibility and residency criteria. If Revenue NSW contacts you during an audit, it is a condition of receiving the grant that you must provide all information requested (if any).
You may be required to repay the grant 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 grant or you did not meet the principal place of residence requirement.
Authors: Vanya Lozzi & Christopher Colevski
Disclaimer
The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future.
Share this
