Building Bonus Scheme
On 7 June, the McGowan Labor Government announced a $125 million Building Bonus package to ramp up activity in the residential building sector, stimulate the economy and support around 2,600 local jobs.
The package includes $117 million for $20,000 Building Bonus grants and $8.2 million for the expansion of the 75 per cent off-the-plan transfer duty rebate scheme.
Who is eligible for a Building Bonus Grant?
Building Bonus grants are available for people who;
- enter into a contract to build a new home on vacant land, or
- purchase a new home being constructed under a single-tier development on a strata plan or other land survey type.
After making an inquiry to the Department of Finance of to confirm whether Community Housing Providers (CHPs) were also able to access this grant the response was as follows:
“To be eligible for the Building Bonus grant you can be a natural person, corporation or trustee and they can be owner occupiers or investors. You must enter into a comprehensive building contract between 4 June 2020 and 31 December 2020 to build a new home on vacant land.
If a community housing provider can meet the above criteria they can apply for the grant.” – Department of Finance
What doesn’t qualify for the grant?
Properties that don’t qualify for the grant include:
- Properties in multi-tiered developments such as an apartment tower. These properties may qualify for an off-the-plan duty rebate.
- Mixed use and commercial property.
- Short-stay Accommodation.
- New constructions where there is already a home on the land, for example, adding a granny flat to the backyard of the person’s home.
- Refurbished property and developments, including where the original property is extended or renovated. Substantial renovations may qualify for the Australian Government HomeBuilder grant.
- A building contract or contract for the purchase of property that the Commissioner is satisfied was cancelled to allow a new contract to be made for the purpose of qualifying for the grant.
- Completed dwellings (existing stock) held by the developer or another person.
More information
Further information on the applying for a Building Bonus Grant can be found here. The media release announcement is here.
Disclaimer
This is a reflection on the eligibility criteria of the Building Bonus Scheme and does not guarantee a community housing provider grant application would be successful. Rather it reflects that a community housing provider is open to apply for the grant as confirmed by the Department of Finance in response to an email inquiry.
