The Queensland Government has introduced a $10,000 Building
Boost Grant to support Queensland's struggling building
industry and assist housing affordability for home buyers.
Passed by the Queensland Parliament on 27 October 2011, the
Building Boost Grant Bill 2011 has retrospective effect
and applies to eligible transactions undertaken between 1 August
2011 and 31 January 2012.
Here, senior associate Michelle Hall outlines what home owners,
builders and investors need to know about the Building Boost
The Building Boost Grant is designed to stimulate the
Queensland housing market and help with affordability, supply and
The scheme is temporary and only applies to eligible
transactions undertaken between 1 August 2011 and 31 January
A first home buyer may be eligible to up to $17,000 in grants,
as they can obtain the $10,000 Building Boost Grant along with the
$7,000 First Home Buyer Grant.
Industry analysts will be watching closely to determine whether
the Grant stimulates the currently depressed housing and
Eligibility for the Queensland Building Boost Grant
The Building Boost Grant is accessible to all home buyers and
investors who are over 18 years of age, as well as corporations and
trustees who enter into a contract to purchase or build a new home,
townhouse or apartment in Queensland for the purpose of living in
or investment. The total value of the land and the home must be
less than $600,000.
Owner-builders may also be entitled to claim the Building Boost
Grant upon meeting certain requirements. A substantially renovated
home may also qualify under certain conditions.
While the owner of the property does not have to live in the
home, the home must be occupied as a residence for at least three
months in the first year of ownership. Renting to a tenant
satisfies this occupancy requirement.
Because the Building Boost Grant is available for eligible
transactions undertaken between 1 August 2011 and 31 January 2012,
contracts to purchase or build must be entered into between these
dates. However, to avoid abuse of the scheme, replacement contracts
entered into on or after 1 August 2011 that replace ineligible
contracts entered into before 1 August 2011 will not qualify.
Once the contract is entered into, the building work must start
within 26 weeks of the date of the contract, and be completed
within 18 months of the work starting. For contracts to purchase
new off-the-plan homes, building work must start by 31 January 2013
and be completed by 31 January 2015.
Where the eligibility requirements are met, the same applicant
can obtain the Building Boost Grant for each new home purchased or
built, as long as the transactions are separate. However, if an
applicant or a related person of the applicant has applied for, had
approved or been paid four or more Building Boost Grants, the
Commissioner of State Revenue has to be satisfied (after
considering the relevant factors set out in the legislation) that
the transaction entered into advances the purpose of the
legislation, is not an artificial, blatant or contrived
arrangement, and has not been entered into for the sole or main
purpose of obtaining the Building Boost Grant.
Using the Building Boost Grant to boost your business
The Building Boost Grant provides a marketing opportunity for
developers and/or builders looking to attract buyers. Applicants
can apply for the Building Boost Grant from the Office of State
Revenue or from an approved lodger (eg a bank) in certain
circumstances. Developers and/or builders should become familiar
with the application process and eligibility requirements so they
can assist their customers in this process and attract more
Impact of the Queensland Building Boost Grant
It is unclear yet as to whether the Building Boost Grant has had
a positive impact on the construction and housing industry. Other
economic issues, such as the recent removal of the stamp duty
concession rates for home buyers, may weaken the effect of the
Building Boost Grant. While the legislation has been passed,
concerns have been raised in Parliament about the impact of the
Building Boost Grant and whether it will achieve its desired
effect. For example, some in the housing industry are concerned
that sales will decline after the Building Boost Grant incentive is
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