HomeBuilder Ready

HomeBuilder Ready

Following the Federal Government’s Homebuilder announcement this week the team at Lanser have put together some frequently asked questions for people looking to build their new home at a Lanser community…

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Q. What is HomeBuilder?

HomeBuilder is a time-limited, tax-free grant program to help the residential construction market to get through the Coronavirus pandemic. HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home. 

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Q. When can I access HomeBuilder?

HomeBuilder will be available for building contracts signed between 4 June 2020 and 31 December 2020, where construction commences within three months of the contract date. 

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Q. If I am buying land, how can I ensure my building contract will meet the construction timeframe required to be eligible?

To commence construction within three months of your building contract date, you need to ensure your land is already titled and ready to build on (or will titled within the prescribed timeframe). Lanser Realty staff are aware which available Lanser allotments will be eligible for this scheme.

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Q. How can I access HomeBuilder? 

You should contact your relevant State Revenue authority on when and how to apply for HomeBuilder.  You will be able to apply for HomeBuilder when the Government of the South Australia signs the National Partnership Agreement with the Commonwealth Government. 

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Q. When will I receive HomeBuilder?

HomeBuilder grants will be paid by the South Australian Revenue authority provided you meet the eligibility criteria. 

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Q. Am I eligible to receive HomeBuilder?

To access HomeBuilder to build at a Lanser community, owner-occupiers must meet the following eligibility criteria: 

  • you are a natural person (not a company or trust);
  • you are aged 18 years or older;
  • 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 (house and land) does not exceed $750,000.
  • construction must commence within three months of the contract date. 

Owner-builders and those seeking to build a new home which will be used as an investment property will not be eligible for HomeBuilder. 

The registered or licensed builder (depending on the state or territory) must demonstrate that the contract price for the new build is no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser. 

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Q. Is there a limit to how many people can get HomeBuilder?

No. HomeBuilder is an uncapped, time-limited grant. 

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Q. I already own land but haven’t signed a contract to build a new house – am I still eligible?

Yes, if you meet the following criteria: 

  • If you own vacant land before 4 June 2020, and then build, the total value of the land and new build cannot exceed $750,000; or
  • If you buy the land after announcement, and then build, the total value of the land and build cannot exceed $750,000.

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Q. What types of home designs are eligible under HomeBuilder?

All dwelling types (house, apartment, house and land package, off-the-plan, etc) are eligible under HomeBuilder, in accordance with the requirement that the owner-occupier must contract to build a new dwelling. The applicant must also meet the eligibility requirements outlined above.

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Q. Are Lanser’s Turnkey Homes eligible for HomeBuilder?

Our Turnkey Collection homes that are currently being sold off-the-plan (in other words not yet constructed) are eligible for the HomeBuilder grant if they are advertised at less than $750,000 and the builder meets the HomeBuilder licencing requirements. Our Lanser sales staff will be able to help you navigate these eligibility questions.

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Q. Are home & land packages advertised on Lanser’s websites eligible for the HomeBuilder scheme?

All house & land packages available at Lanser’s communities, that are being sold off-the-plan (in other words not yet constructed) are eligible for the Homebuilder grant if they are advertised at less than $750,000 and the builder meets the HomeBuilder licencing requirements. Our Lanser sales staff will be able to help you navigate these eligibility questions.

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Q. What are the price caps associated with Homebuilder?

HomeBuilder is subject to two prices: a contract price cap (for new builds) and an income cap for applicants.

Contract price cap

A national price cap of $750,000 will apply for new home builds. This means that the value of new builds (house and land), house and land packages, and off-the-plan purchases must not exceed $750,000 to be eligible for HomeBuilder.

Income price cap

Eligible applicants must meet one of the following two income caps:

  • $125,000 per annum for an individual applicant based on the 2018-19 tax return or later; or
  • $200,000 per annum for a couple based on their combined 2018-19 tax return or later.

The income price cap, as well as the eligibility criteria for the applicant, were chosen to reduce complexity as they align with the Commonwealth Government’s First Home Loan Deposit Scheme.

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Q. Is a HomeBuilder grant taxed?

No – a HomeBuilder grant will not be taxed. This is consistent with existing state and territory First Home Owner Grant programs.

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Q. I am not a First Homebuyer – can I access HomeBuilder?

Yes. Provided you meet the eligibility criteria, you can apply for a HomeBuilder grant. However, HomeBuilder is not available for investment properties or to owner-builders.

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Q. If I am a First Homebuyer in South Australia – what am I eligible for?

As a First Homebuyer in South Australia, if you meet the eligibility requirements for the HomeBuilder scheme and the First Home Owners Grant (FHOG) you will be eligible to receive both grants. You may also be eligible for the First Home Loan Deposit Scheme (FHLDS). Under the FHLDS, eligible first home buyers can purchase a modest home with a deposit with as little as 5 per cent (lenders criteria also apply).

This means as a First Homebuyer in South Australia building a new home, you could be eligible for the $25k HomeBuilder scheme, $15k FHOG, and up to $10k in savings under the FHLDS. This is a total of up to $50k for first home buyers.

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Q. How do I apply?

You will be able to apply for HomeBuilder through the South Australian revenue office once the State Government signs the National Partnership Agreement.

States and Territories will backdate acceptance of HomeBuilder applications to 4 June 2020 once the National Partnership Agreement is signed.

Lanser Realty staff are happy to provide for information about when and how you will be able to apply for HomeBuilder.

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Q. What documentation will I need to provide?

The State revenue office will require certain documents to process your application. It is expected that you will need to provide the following at a minimum:

  • proof of identity;
  • a copy of the contract, dated and signed by you and the nominated registered or licenced builder;
  • a copy of the builder’s registration or licence (depending on the state you live in);
  • a copy of your 2018-19 tax return (or later) to demonstrate your eligibility against the income cap;
  • documents such as council approvals, building contracts or occupation certificates and evidence of land value; and
  • More information on the documentation you will need to provide will become available through the relevant State authority.

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Q. When will I know if my HomeBuilder application is successful?

The relevant state administering agent will notify you of the outcome.

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Q. What happens if my HomeBuilder application is not successful? Can I appeal? Who should I appeal to?

If you are dissatisfied with the outcome of your HomeBuilder application, you can request that the matter is referred to the relevant state dispute resolution body.

More information on the appeals process will become available in due course.

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Q. What happens if there is a change in circumstance and I’m no longer eligible?

If your circumstances change after you have applied for HomeBuilder but have not yet received the payment, and no longer meet the eligibility criteria, you will need to notify your State revenue office immediately.

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Q. Who pays HomeBuilder and who receives it?

The relevant State revenue office will distribute the $25,000 grant directly to the applicant.

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Q. How will the Government implement HomeBuilder? 

HomeBuilder is expected to be implemented via a National Partnership Agreement, signed by the Commonwealth and State and Territory Governments. This approach will draw on existing State and Territory mechanisms to distribute the HomeBuilder payments.

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Q. What integrity measure is the Government Implementing?

HomeBuilder is subject to strict eligibility criteria, price caps and income caps to manage demand and support residential construction activity.

Owner-builders and those seeking to build a new home or renovate an investment property are ineligible for HomeBuilder.

The registered or licensed builder (depending on the State or Territory) must demonstrate that the contract price for the new build or substantial renovation is no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser.

In addition, any building contract entered into must be at arm’s length. This means the contract must be made by two parties 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.

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You can find out more about the national HomeBuilder scheme here.

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To learn more about purchasing land or a home & land package at a Lanser community that is eligible for the HomeBuilder scheme – please contact a member of the Lanser team on  (08) 8132 1115.