The New Home Builder Grant: Our Top Tips on How to Apply

by | Mar 2, 2021 | ultimate guide

Get in Quick Before it’s Too Late

The New Home Builder Grant is a government initiative that helps assist newcomers to the home building market. New applicants can take home $15,000 per home if buying or building a new house or renovating an older one. At this stage, home builders have to sign their building contracts before 31 March 2021 to benefit from this grant. That means the grant will be gone (for the foreseeable future) after this date (www.abc.net.au). According to economists, housing approvals are at all time highs. Many are jumping on board during the last days of this opportunity. Read our comprehensive guide to make sure you are eligible for a New Home Builder Grant (www.smh.com.au):

Am I Eligible for this Grant?

The New Home Builder Grant is separate from the First Home Buyer Grant or any other Concessions from the government. You can only get it if you are building anew or renovating an existing property. The government provides the following, general criteria for eligibility:

  • You must sign/have signed your fixed price build contract before 31 March 2021.

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  • You must be an Australian Citizen.
  • This must be the first time you are receiving the grant.
  • You must be at least 18 and an individual person (not a company or trust).
  • Your taxable income should be less than $125,000 as an individual or less than $200,000 combined with your partner.
  • You must be the owner of the property.
  • You must live in your house for 6 months after it is put in your name.
  • One or more room can be rented out during this 6 month period.
    • The government may ask you to provide documents showing the occupancy of all applicants.
    • You must still be able to use your home in the presence of other tenants.
  • The builder has to have had a license from before 4 June 2020 for contracts signed before 29 November 2020 or from before 29 November for contracts signed afterwards.
  • The contract must have been signed by two independent parties at a fair market price (done at arm’s length).

If You’re Buying

This category applies to you if you are buying either a new house or off the-plan-home.

  • In this case, your contract price must be less than $750,000 (including GST).
  • Preparation of the site and any excavation must have started before 4 June 2020. This preparation and excavation must have taken place within 6 months of the contract being signed.

If You’re Building

This category applies to you if a contracted builder is constructing your home.

  • The amount paid to your builder, and the value of the land and its existing structures should not exceed a total of $750,000.
  • Site preparation and excavation should commence within 6 months of signing the contract. The foundations must already have been laid and one progress payment must have been paid to the builder.

If You’re Renovating

This category applies if you are renovating an existing home or demolishing and replacing an existing home.

  • The value of your property before renovation has to be less than $1.5 Million.
  • Your renovation costs should be between $150,000 and $750,000 (including GST).
  • Construction works have to commence within 6 months of the contract being signed.
  • The contract must state that no renovation work should be undertaken by the owner of the property.
  • By April 2023, a minimum of cost of $150,000 should be paid to the builder.

How Much can I get from the Grant?

If you signed your contract between 4 June and 31 December 2020, the amount is $25,000.

If you signed your contract between 1 January and 31 March 2012, the amount is $15,000.

How to Apply:

Step 1 – Initial Application

You must apply by 14 April 2021. Late applications are not accepted by the government, so don’t snooze and lose! You can apply for the Home Builder Grant here. Don’t feel intimidated by the form. We have outlined all the information you need to complete it:

Part A – Applicant Eligibility. The first section deals with criteria roughly corresponding to the requirements listed under Am I Eligible? They are similarly straightforward.

Part B – Applicant Details. This section concerns your personal details.

Part C – Details of the Grant Property. This part covers the address of your property and the contract type. The three contract options correspond to whether you are buying, building or renovating your home:

  1. HIA or Master Builder Fixed price Building Contract (building)
  2. Substantial Renovation Contract (renovating)
  3. Off the plan Home/New Home Contract (buying)

Part C1 – Building a New Home. This section requires figures from the valuation of your property. You will need to provide the value of the building contract and the land it is being built on. The commencement date of construction and Builder’s details.

Part D – Payment Details. Here you need to provide bank details for the government to pay the grant into.

Part E – Declaration. Read over all the information you have provided carefully and ensure it is correct. Also read the points outlined in the declaration before checking the box. In case you need any further assistance, refer to the government guide.

Step 2 – Gather and Submit Supporting Evidence

OUR TOP TIP: The responsibility for the application will fall on you! Be prepared to have a conversation with the developer and builder to ensure they are able to provide the documents you need for your application

Once your application is lodged, you have until 30 April 2023 to collect all the other documents required for the grant, (you still need your building contract signed before the 31st of March). This sounds like plenty of time, but we advise you to get this done as soon as possible. The faster you submit your evidence, the faster you get your money. You will require the following paperwork (these documents do not need to be certified):

  • A copy of your build contract (signed between 4 June 2020 and 31 March 2021).
  • A copy of your annual Australian Taxation Office notice of assessment (for the year ended 30 June 2019 or 30 June 2020).
    • You and your partner (if applicable) must provide this notice for the same financial year.
  • A copy of your Australian Citizenship Certificate, Australian Birth Certificate or Australian Driver’s License.
  • If you have not provided a copy of your Australian passport, you will need to provide a copy of your photo ID (such as an Australian driver licence, Australian proof of age card).
  • If you have changed your name, you will need to provide a certificate for this.
  • Provide a copy of a title search or registration confirmation statement. These show you and your co-applicant (if applicable) as registered owners of the property. Click here for titles enquiries.

If You’re Buying

  • Provide evidence of when construction commenced. This could be in the form of an inspection certificate or statement from the developer.

If You’re Building

  • Provide a copy of the contract of sale if it is less than 12 months from the date of your application.
  • Provide a copy of a valuation or market appraisal by a bank, licensed independent valuer or real estate agent. You can also provide the most recent rates notice if it is more than 12 months from the date of your application.
  • Provide a letter from your builder indicating when excavation and site preparation commenced including a photo of the laid foundations.
  • Provide evidence from a building certifier showing foundations have been laid.
  • Provide a copy of a receipt or letter from your builder showing they have received the first progress payment for the construction works.

If You’re Renovating

  • Provide evidence of your property value prior to renovations. This could be in the form of a market appraisal or bank valuation. This appraisal should be from no later than 3 months before the contract start date.


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