Homebush farmer wins legal battle over homebuilder grant
A Queensland cane farmer has won a four-year legal battle against the State Revenue Commissioner over a HomeBuilder grant.
Mackay
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A Homebush cane farmer has successfully challenged the State Revenue Commissioner after his application for a homebuilder grant up to $25,000 was refused.
Stephen Muscat had bought the 298ha Sarina Homebush Rd property in 2013 for $1.35m with an intention, at a later date, to demolish one of the farm houses and rebuild a new home.
After Cyclone Debbie caused considerable damage to the property Mr Muscat began the demolition process in 2019, and entered into a building contract for a $361,740 house with Dixon Homes on December 18, 2020.
A recent court judgment stated that days later he also put in his grant application, however it was rejected in late 2021 by the State Revenue Commissioner who stated Mr Muscat’s property value exceeded the cap.
The one-off payment grants were introduced to stimulate the residential construction sector during the COVID-19 crisis.
Successful applicants who signed a contract to build a new home or substantially renovate an existing home between June 2 and December 31, 2020 received a $25,000 grant, which was reduced to $15,000 for eligible contacts between January 1 and March 31, 2021.
Mr Muscat argued he should have applied for the grant on the basis he has a substantial renovation contact, which fell well under the $1.5m eligibility cap.
However the Commissioner still refused the application so Mr Muscat took his fight to the Queensland Civil and Administrative Tribunal which went to hearing over two separate days in 2024 and 2025.
Mr Muscat argued there was “no way he would have entered into a building contract without this support” of the grant.
In the judgment QCAT member Robert King-Scott determined the timing of a separate demolition was not an eligibility barrier and found Mr Muscat “rightly questions the appropriateness of entering into a new home contract before the existing house has been demolished and the site cleared”.
He further added it was “unreasonable” to expect both to be accomplished within the six-month eligibility window.
Mr King-Scott also accepted Mr Muscat’s property’s value was within the $1.5 million cap and that he had paid more than $150,000 to the builder as required.
“I see no basis to imply from the context that the separate contract be entered into in the same eligibility period.
“Therefore, the correct and preferable decision is that the Mr Muscat’s application for the HomeBuilder grant should be approved.
“As a consequence, the Commissioner’s decision is set aside and there be a fresh decision allowing the grant.”