Only one housing construction grant is payable in relation to a particular new home
Version Number: 1
Legislation: First Home and Housing Construction Grants Act 2000
Date Issued: 16 August 2013
Revenue Rulings do not have the force of law.
The First Home Housing and Construction Grants Act 2000 (the “Act”) provides for a number of home purchase assistance measures, including the Housing Construction Grant (HCG).
The HCG was introduced on 15 October 2012 to provide a boost to the State’s housing construction industry and help stimulate the property sector. It was intended that all eligible new homes valued at less than $450,000 would receive a HCG.
The availability of the HCG was extended as part of the State Budget handed down on 6 June 2013. The extension of the HCG means that home buyers who enter into contracts to purchase or build an eligible new home on or before 31 December 2013 can receive the HCG of up to $8,500.
Section 7(5) of the Act provides that only one HCG is payable in relation to a particular new home. That is, where the HCG has been approved and paid in relation to a property, no further HCG can be paid in relation to that property, unless that previously paid HCG has been repaid.
RevenueSA is aware that in certain circumstances, both the builder of a new home and the purchaser of the new home will be eligible to apply for the HCG in respect of that property. That is, a builder who completes a new home transaction will be eligible to apply for the HCG in respect of that property, however, if they do not apply for the HCG prior to selling the property to a purchaser, the purchaser may also be entitled to apply for the HCG in respect of the property.
In such circumstances, it will be necessary for the relevant parties to determine between themselves who will apply for the HCG in respect of a particular property. It should be noted that in circumstances where both parties lodge an application for the HCG in respect of the same property, RevenueSA will pay the HCG to the purchaser of the new home.
If you are unsure about any aspect concerning your eligibility, it is important that you contact RevenueSA for clarification before proceeding with your application.
Further information can be obtained from RevenueSA.
View this Revenue Ruling as a pdf (PDF 227KB)