How to apply for Tassie’s HomeBuilder grants

Applications for HomeBuilder grants open this week, with Tasmanians able to cash in on up to $45,000 in assistance from the state and federal governments. Here’s what you need to know + how to apply >>

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APPLICATIONS for the state and federal governments’ HomeBuilder grants are now open.

Minister for Finance Michael Ferguson said the grants are vital in Tasmania’s economic recovery, post-COVID.

“There has never been a better time for Tasmanians to build a new home, and there is nowhere in Australia better to build than in Tasmania,” he said.

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The State Government has grants of up to $20,000 on offer for new home builders, while the Federal Government is providing a further $25,000, meaning Tasmanians can access up to $45,000 for their new home.

“Legislation was passed by both houses of Parliament ... to give effect to the Tasmanian HomeBuilder Grant and to implement the Australian Government’s HomeBuilder Grant scheme in Tasmania,” Mr Ferguson said.

“We have worked closely with the Morrison Government to ensure both grant programs are complementary, with both to be administered by the Tasmanian Government, making the application and administration as simple as possible.”

The HomeBuilder Grant is one component of the State Government’s $1.8 billion infrastructure package, which it estimates will underpin $3.1 billion worth of construction over the next two years.

What is the Tasmanian HomeBuilder grant?

The $20 000 Tasmanian HomeBuilder grant applies to eligible transactions that satisfy certain building requirements.

Are you eligible for the THB grant?

Transactions must be entered into between 4 June 2020 and 31 December 2020 and must be with a licensed builder

The THB grant commenced on 4 June 2020 and the grant only applies to transactions where:

• a home is being built through a builder licensed as at 4 June 2020;
• a comprehensive home building contract for the home is entered into between 4 June 2020 and 31 December 2020 (inclusive) and applications for the grants are made within this period;
• building of the home has substantially commenced within three months of entering into the contract; and
• building of the home is completed within 18 months of substantial commencement. Building is taken to have been completed when it is ready for occupation as a place of residence (i.e. usually at the time an occupancy certificate is issued).

A transaction is not eligible if that transaction replaces a transaction, entered into before June 4, 2020, that is for the same property and that is between substantially, or that benefits substantially, the same parties.

Applicants can only receive the grant once and only one THB grant is available per property.

All applicants must also meet the general THB grant criteria.

General THB Grant Criteria

To be eligible for the THB grant the:

• applicant(s) must be a natural person (not a company or trust);
• applicant(s) must be at least 18 years of age;
• applicant(s) must be Australian citizens;
• applicant(s) must be an individual or a couple;
• applicants must occupy the home as their principal place of residence for a continuous period of at least six months commencing within 12 months of the date of completion; and
• applicants must be below one of the following two income caps:
• $125 000 per annum for an individual applicant based on their 2018-19 taxable income or later; or
• $200 000 per annum for a couple based on their combined 2018-19 taxable income or later.

Build Criteria

The land value plus the consideration to build the home under the contract must not exceed

$750 000.

Owner builders, those purchasing a pre-built home (or spec home) and those seeking to build a new home as an investment property are not eligible.

The applicant must use a licensed builder (licensed as at June 4, 2020) and the contract the

applicant enters into to build the home must be at arm’s length.

This means that 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 THB grant does not apply to renovations of an existing property.

What happens if I cannot meet the specified time frame for the THB grant?

If the applicant does not meet the specified time frame for completion, the applicant will be ineligible for the THB grant and will be required to repay the $20 000.

What is meant by completion?

The home is usually taken to have been completed at the time an occupancy certificate is issued.

When will payment be made?

The grant will usually be paid on the laying of foundations of an eligible home, but the Commissioner has the discretion to reserve payment of the THB grant until all conditions have been met including the residence requirement.

Which homes qualify?

To qualify for the THB grant, the home the applicant builds must:

• be located in Tasmania;
• be fixed to the applicant’s land;
• be newly built and not a renovation of an existing property; and meet local planning standards.

Residency requirements

To qualify for the THB grant, applicants must:

• move into the property that the applicant was paid the THB grant with respect to within 12 months of the date of completion; and
• retain ownership of the property and occupy it for a continuous period of at least six months commencing within the first 12 months.

This means that the subject residence must be the place that the applicant would usually eat and sleep. Leaving personal property at a vacant residence does not meet these conditions.

What if the applicant cannot meet the residency requirements?

The applicant must notify the State Revenue Office and repay the THB grant within 14 days of the date they become aware that they cannot meet the residency requirements. The SRO will routinely check that residency requirements have been met.

If exceptional circumstances exist or occur (that is, those outside the control of the applicant) the Commissioner of State Revenue has the discretion to:

• extend the 12 month period in which the applicant must commence occupying the home; or
• reduce the six month period for which the applicant must occupy the home.

Requests to vary the period of occupancy cannot be considered after a decision has been made to recall the THB grant.

More information and application forms can be found here.

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