A number of Agents and Builders have sought clarification on whether the $25,000.00 home builders grant applies to off the plan purchases. We have been in consultation with Revenue New South Wales regarding this question and have obtained some clear guidelines.
Yes, the grant does apply to off the plan purchases, as long as the following requirements are met:
- The contract is executed after 4 June 2020;
- The contract is executed no later than 31 December 2020;
- The construction work is commenced no later than 31 March 2021; and
- The building works are completed prior to 31 October 2022.
Where the development is for strata, the Contract for the purpose of the grant is the Contract for Sale and Purchase of land. Where it is house and land, it is the date of the building contract.
When applying for the grant, the Purchaser will have to declare that, to the best of their knowledge, the building will be complete by 31 October 2022. This creates a major problem for sunset clauses that are enacted later than this date. If you have a sunset clause in 2023, the Purchaser cannot make a declaration that states they believe the property will be completed by the requisite date.
It is worth noting that, if you are advertising the use of the grant to assist with a purchase, your sunset date must be altered in accordance with 31 October 2022.