HomeBuilder 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 property 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,
- 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.
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 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 31 October 2022.
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 3 months of the contract date. Where commencement is delayed due to unforeseen factors outside the control of the parties to the contract, a maximum extension of an additional 3 months may be provided.
When construction is considered to have commenced will depend on the type of contract that you enter into. Commencement of construction means:
|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|
Where commencement is delayed due to unforeseen factors outside the control of the parties to the contract the applicant(s) can request a maximum extension of up to an additional 3 months by lodging a statement with supporting evidence for the Chief Commissioner to consider.
On application, the Chief Commissioner may consider exercising discretion in situations such as but not limited to the following:
- delays in obtaining council approvals;
- difficulties in obtaining construction materials and/or sub-contractors;
- inclement weather, where the disruption is substantial;
- health problems relating to, or the death of, a person critical to the commencement of the project;
- prolonged industrial disputes;
- natural disasters.
The Chief Commissioner is unlikely to exercise discretion in situations such as, but not limited to, the following;
- where an applicant does not undertake appropriate due diligence when entering into a contract, or makes deliberate and informed choices which make them ineligible without the exercise of the Chief Commissioner’s discretion;
- where delay results from the builder contracting to undertake more work than they could be reasonably expected to complete in the relevant timeframe; or
- where construction is delayed because the land developer has set pre-development sales targets and insufficient blocks have been pre-sold in a subdivision.