There has been much speculation as to whether the Homebuilder Grant of $25,000 will apply to off the plan purchase contracts where construction has already commenced on site. The information was lacking and it was difficult to provide answers to our clients who have already signed an off the plan contract where construction had already commenced, or were contemplating entering into an off the plan contract, again where construction had already commenced. There are many projects on the Gold Coast and indeed throughout Qld and clarity was required. The Government has just released a further update to the Homebuilder Grant. Specifically, an updated fact sheet and FAQ has been released on the Treasury Coronavirus website which now clarifies the position. Firstly, if the contract signed is an eligible contract, (and there are other conditions to satisfy this), it must be an eligible contract entered into from 4 June 2020 up to 31 December 2020. That information we already know. But now it has been clarified, that if you sign a contract to buy a new dwelling after 4 June 2020, and construction on the home commenced BEFORE 4 June 2020, then the home does not qualify for Homebuilder. Here is a link to the relevant updated Homebuilder FAQ as at 18 June 2020: https://treasury.gov.au/sites/default/files/2020-06/HomeBuilder_Frequently_asked_questions_0.pdf. Thus, if you are considering entering an off the plan contract at the moment, and construction has not commenced, your contract may be eligible, but construction will still have to commence within 3 months of the contract being signed to be eligible. If you are unsure as to whether your contract you have signed or are about to sign may be an eligible contract, please give us a call so we can advise you further.
Posted By despina-priala
Despina Priala has practised in property and commercial law on the Gold Coast for over 25 years and has extensive experience in this area.
Updated : 19th June 2020 | Words : 286 | Views : 80