HomeBuilder Grant

Guidelines and Eligibility requirements

On 27 April 2023, the ACT Government agreed with the Commonwealth Government's proposal to extend the application deadline for document submission for the HomeBuilder Grant from 30 April 2023 to 30 June 2025 for all application categories. Other HomeBuilder Grant conditions remain unchanged. 

The HomeBuilder Grant is now closed to new applicants. Only those persons who have completed a Part A Registration on or before 14 April 2021 will be able to submit a Part B Detailed Application.

HomeBuilder is a Commonwealth grants program administered by the ACT Revenue Office (ACTRO). HomeBuilder provides eligible owner occupiers with a grant of $25,000 for contracts entered into from 4 June 2020 to 31 December 2020 and $15,000 for contracts entered into from 1 January 2021 to 31 March 2021, to build a new home, substantially renovate an existing home or buy an off-the-plan home/new home. A new home is one that has not previously been sold or occupied as a place of residence (e.g. a spec build) and where construction commenced on or after 4 June 2020.

Prospective applicants should read the information on the HomeBuilder Grant on the Commonwealth Treasury's website to determine their eligibility before applying.

About HomeBuilder

On 4 June 2020, the Australian Government announced HomeBuilder to provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home, substantially renovate an existing home or buy an off-the-plan home/new home. On 29 November 2020 the Australian Government announced an extension to the scheme. A $15,000 grant is available to building contracts entered into between 1 January 2021 to 31 March 2021, inclusive.

While the eligible contract must be signed between 4 June 2020 and 31 March 2021 (inclusive), construction need not commence prior to 31 March 2021. The Commonwealth Government extended the construction commencement requirement from six months to eighteen (18) months for all existing applicants. This means construction must commence within eighteen (18) months from the date the contract was signed and construction cannot have commenced before 4 June 2020. All applicants who signed contracts during the HomeBuilder eligibility period between 4 June 2020 and 31 March 2021 will have this extension applied to them.

The Australian Government HomeBuilder Grant is subject to the provisions of the National Partnership Agreement between the ACT Government and Australian Government.

HomeBuilder applications

In the ACT, applying for the Grant is a two-part application process:

Part A: Registration

Part A Registration is now closed.

Part B: Detailed Application

A comprehensive application form (available here) is the second part of your application. Only those persons who completed a Part A Registration on or before 14 April 2021 are eligible to complete this form. This form requires detailed information about you, your builder, type of construction, as well as detailed supporting documentation. Part B applications, including all supporting documents, must be received by 30 June 2025.

We will then advise you whether your application has been approved or declined.

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 of the property. Each applicant must be:

• a natural person (not a company or trust),
• aged 18 years or older at the date of the contract, and
• an Australian citizen by 14 April 2021.

When you must be registered on the certificate of title of the property depends on the type of contract you enter into:

• For contracts to build, you must be registered on title no later than the laying of foundations and the first progress payment is made, or shortly thereafter.
• For substantial renovations, you must be registered on the title 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 when the building is completed, and you are entitled to take possession of the home.

Applicant(s) must be below one of the following two income caps:

• for an individual, $125,000 in taxable income as shown on your 2018-19 or 2019-20 Notice of Assessment as issued by the Australian Taxation Office, or
• for a couple, $200,000 in taxable income as shown on your 2018-19 or 2019-20 Notices of Assessment as 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, e.g. siblings.

All parties listed on the title of the property are required to apply for the HomeBuilder Grant. If more than one person is listed on the title as the registered proprietors, they must jointly apply for the HomeBuilder grant as a couple. Each applicant must meet all the eligibility criteria in relation to age, citizenship, income and living in the property as their principal place of residence. A property is only eligible for one HomeBuilder grant.

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 of the Commonwealth.

Each applicant must live in the home as their principal place of residence for a continuous period of at least 6 months immediately on completion of construction, renovation or settlement.

Investment properties are excluded from HomeBuilder.

Eligible homes

The home must be:

• located in the ACT,
• fixed to your land,
• suitable as a place of residence, and
• owned, or will be owned, by you.

Eligible contracts

HomeBuilder is available for one of the following contracts signed between 4 June 2020 and 31 March 2021 (inclusive):

• 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 (inclusive of GST).
• A contract 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, these will be treated as a substantial renovation, subject to the same values.
• 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 building service contractor who is licenced in the ACT. The licencing requirements for builders is as follows:

• Where an eligible contract is signed before 29 November 2020, the builder must have a valid licence or registration before 4 June 2020.
• Where an eligible contract is signed on or after the 29 November 2020, the builder must have a valid licence or registration before 29 November 2020.

For off-the-plan purchasers, applicants should provide their developer or selling agent with this template, which can be found here, for the licenced builder to complete. This completed document should be submitted with your Part B application.

Owner-builders are not eligible for HomeBuilder. An owner-builder means the person who is the registered or licenced builder and who takes legal responsibility for domestic building work carried out on their own land/property. Owner-builders therefore do not enter into an eligible contract under HomeBuilder.

For contracts to purchase an off-the-plan home/new home, construction can have commenced prior to the date of the sales contract, however not before 4 June 2020.

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 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 eighteen (18) months of the contract date. There is no provision in the scheme to extend this period beyond eighteen months.

Commence construction means substantial earthworks, excavations, demolition, and physical building work.

Preparatory works such as site clearing, fencing, markings, delivery of building products will not be considered sufficient to meet the construction requirement.

Eligible substantial renovations

For the purposes of HomeBuilder, substantial renovations can be either:

• substantially altering the existing dwelling, or
• demolishing your home and building a new home on the land.

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.

Examples of works that would not qualify 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.

HomeBuilder payment

HomeBuilder will be paid once the ACT Revenue Office is satisfied that you meet all of 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 progress payments (of at least $150,000) 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 June 2025.

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 cheque, savings, or home loan 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.
• Commence the above period of occupation immediately upon 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 ACT 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 I do if I cannot meet the above residency requirements?

You must notify the ACT Revenue Office and repay the HomeBuilder Grant within 14 days of the date you become aware you cannot meet the residency requirement.

The ACT Revenue Office may require that applicants provide information to verify that they have met the residence requirement.

Applicants should keep appropriate records to demonstrate the grant address was used as the principal place of residence.

If you have difficulties in meeting the residency requirement, please contact us to discuss your situation.

What can I do if my application is not approved?

If your HomeBuilder Grant application is declined and you do not agree with the decision, you may apply to the Commissioner of ACT revenue for a reconsideration.

A reconsideration application must be lodged within 60 days of the date of the letter advising you of the decision and include the reasons why you believe the decision is incorrect. Reconsiderations 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.

To apply for a reconsideration of your application, please email your supporting arguments along with your name and reference number to ocrmd@act.gov.au.

HomeBuilder compliance

The ACT Revenue Office may audit HomeBuilder applications for compliance with the eligibility and residency criteria. Should we contact you during an audit, it is a condition of receiving HomeBuilder that you must provide all information requested.

You must advise us within 14 days if you cease to use the property as your principal place of residence.

You may be required to repay HomeBuilder if:

• You do not provide all the information requested by us during an investigation.
• You provide false or misleading information to us.
• We find you should not have received the HomeBuilder or you did not meet the principal place of residence requirement.

Application documentation requirements

Each applicant must provide the following documents:

• Proof of Citizenship (Passport, Citizenship Certificate, Birth Certificate)
• Redacted copy of 2018-19 or 2019-20 Notice of Assessment
• ACT Driver’s Licence Number or Proof of Age card Number (if applicable)

For Renovations:

• Contract for the build (signed and dated)
• Scope of Works
• Building Commencement Notice or Letter from Builder advising that building commenced
• Evidence that $150,000 has been paid to the builder (dated receipts)

For House and Land / Vacant Land

• Contract for the build (signed and dated)
• Building Commencement Notice or Letter from Builder advising that building commenced
• Evidence that $150,000 has been paid to the builder (dated receipts)

For Off the Plan

***Note - applications can only be submitted once settlement is complete and the property is registered in the applicant(s)’ name at ACT Land Titles.

• Contract for Sale
• Building Commencement Notice or Letter from Builder advising that building commenced
• Settlement Statement showing funds distributed
• Evidence of Title Registration
• Applicants should provide their developer or selling agent with this template, which can be found here, for the licenced builder to complete. This completed document should be submitted with your Part B application.

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 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.

Commencement of construction

Substantial earthworks, excavations, demolition and physical building work.

Preparatory works such as site clearing, fencing, markings, delivery of building products will not be considered sufficient to meet the commence construction requirement.

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, i.e. 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 units 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 property.

Owner-builder

A person who is the registered or licenced builder and who takes legal responsibility for domestic building work carried out on their own land/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.

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 and land) and demolish the house down to rebuild this will be counted as a substantial renovation.

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).

Territory

The Australian Capital Territory, the body politic established by section 7 of the Australian Capital Territory (Self-Government) act 1988 (Cwlth) represented by the ACT Revenue Office.

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). In relation to a substantial renovation the value of the home (i.e. house and land) prior to renovation cannot exceed $1.5 million.

Contact

For all ACT HomeBuilder enquiries, please email homebuilder@act.gov.au.

Last modified: 21 June 2021