Apply for a new home construction 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.

Two grants are available to promote investment in the WA residential market and stimulate jobs in the construction industry.

A grant of $20,000 is available for eligible applicants who

  • enter into a contract to build a new home on vacant land or
  • enter into an off-the-plan contract to purchase a new home as part of a single-tier development on a strata plan or other land survey type.

The contract must be entered into between 4 June 2020 and 31 December 2020.

If you receive one of these grants, you may still be eligible to receive the first home owner grant.

There is no cap on the purchase price or value of the contract.

Multiple grants can be paid to the same applicant on separate transactions that meet the criteria for each grant.

These grants are different to the Commonwealth Government's HomeBuilder scheme.  If you receive one of these grants, you may still be eligible to receive the $25,000 HomeBuilder grant.

Building a new detached home

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A grant of $20,000 will be paid to eligible applicants who construct a new home on vacant land.

To be eligible, you must be the registered owner of the vacant land on which the home will be built. The grant will be paid to all registered owners unless written authorisation to pay another person is provided by all owners.

One grant will be paid in relation to each lot of vacant land, regardless of how many homes will be built on the land.

Criteria

  • The home to be constructed must be a detached residence.
    • It cannot be for mixed use, commercial purposes or short stay accommodation.
    • It cannot share walls or roof structures with any other buildings.
  • The land must be vacant.
    • You will not be eligible for the grant if there is already a home on the land and the home will not be demolished, regardless of the size of the home or the land.
    • If the land already has a home on it that will be demolished, the grant will be paid after the home is demolished.
  • The building contract must be in the name of the registered owner of the land.
    • If the building contract is not in the name of the registered owner, you must provide supporting evidence to establish it is a bona fide arrangement, for example, there is a guarantor relationship in place or permission has been given by the registered owner for construction to occur. This does not apply where there is a lease arrangement between the registered owner of the land and the applicant.

Building contract and commencement

  • You must enter into a comprehensive home building contract to build a new home on the land or a contract to construct and install a new relocatable home on the land between 4 June 2020 and 31 December 2020.  Construction must commence within six months of entering into the contract.
  • If you are an owner builder, you must commence construction of the new home on the land between 4 June 2020 and 31 December 2020.
  • You must provide evidence that construction has commenced, which is when the laying of the foundations for the home is completed.

Apply for a grant

  • Apply for the grant once construction has commenced (when the foundations have been laid).  An application form will be available soon.
  • You must apply for the grant by 30 June 2021.

Building a new home on a single-tier development

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A grant of $20,000 will be paid to eligible applicants who enter into an off-the-plan contract to purchase a new home in a single-tier development on a strata plan or other land survey type before development is completed.

To be eligible, you must be the registered owner of the land on which the new home is built and you must be the buyer named in the off-the-plan contract or an eligible transferee.

One grant will be paid in relation to each dwelling. You may be eligible to receive the grant for each contract you enter into.

A single tier scheme is one where the lots or any part of the lots in the scheme are not above or below another lot.  The houses can be either detached or non-detached.

Criteria

The home to be constructed must be part of a single-tier development as defined by section 3(1) of the Strata Title Act 1985 or other land survey type such as a Deposited Plan.

  • The contract cannot be a replacement transaction. The Commissioner may reject a grant application if it is found that the building contract is a replacement contract (of another building contract dated prior to 4 June 2020) entered into for the purposes of obtaining the grant.
  • It cannot be part of a multi-tier development.  See information about the rebate available for pre-construction contracts in multi-tiered developments.
  • It cannot be for a completed dwelling that is held by the developer or another person.
  • It cannot be for refurbished developments, including those where the original property is extended or renovated.

Building contract and commencement

  • You must enter into the contract between 4 June 2020 and 31 December 2020.
  • Construction must commence within six months of the contract date.
  • You may apply to the Commissioner to extend the construction commencement date. Your application must be supported by evidence from the developer detailing why construction did not commence within the required timeframe.

Apply for a grant

  • Apply for the grant once construction has been completed and you are the registered owner of the property.
    • Construction is taken to have been completed on the date the strata plan is registered.
    • Construction of other land survey types is taken to have been completed when occupation permits and building approval certifications are provided.
  • An application form will be available soon.

Examples

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Building a new detached home

Construction of a home (house and land package)

On 30 June 2020, Emma signs a contract for a house and land package which includes the purchase of vacant land and a building contract to construct a new home.

Settlement on the land is on 15 August 2020 and Emma becomes the registered owner of the land. Construction of the new home commences shortly after, with the foundations laid by 1 September 2020.

After 1 September 2020, Emma can apply for and receive the Building Bonus grant for a new detached home.

Construction of homes on a survey-strata scheme

Joe owns a large parcel of land on a deposited plan with an existing house on it that he will demolish before subdividing the land into four lots on a survey-strata plan. He intends to construct four detached houses to be sold once they are completed.

Joe enters into building contracts on 15 June 2020 and has architectural and proposed subdivision plans drawn up to build one home on each of the new proposed lots.

Construction commences (foundations are laid) once he has received conditional approval of the proposed subdivision plan on 15 July 2020. The new survey-strata plan is registered on 10 September 2020 and titles are issued.

Construction is completed when the occupancy permit and building approval certifications are provided to Joe on 20 November 2021. Joe then enters into contracts to sell the new houses.

Joe is eligible to receive a Building Bonus grant for each new detached home, and can apply for the grant for each home after construction of that home has commenced. The prospective buyers of the houses are not eligible for a grant because they will be sold after construction of the homes has been completed.

Construction of a home by an owner builder

Tony is an owner builder who has conditional approval to subdivide his land into two smaller lots, one with his existing home and the other with a new house that he will build then sell once completed. Tony lays foundations on the land on 1 August 2020 and six months later he has the new land survey plan registered with the new Certificates of Titles issued in his name.

Tony can apply for, and will receive, the Building Bonus grant for the construction of the new home when foundations are laid as long as the Commissioner is satisfied that the new survey plan and Certificate of Title for the home will be issued before construction is completed. The buyer of the completed home will not qualify for a grant.

Purchasing a new home off-the-plan in a single-tier development

Purchase of a single storey villa on a strata scheme

Mary enters into an off-the-plan contract on 12 June 2020 to purchase a villa on a proposed lot in a strata plan. The complex will have eight villas when it is completed.

The villa development commences on 31 July 2020. On 15 August 2021 the development is completed and the strata plan is registered.

After settlement occurs and Mary is registered as the villa's owner on the Certificate of Title, Mary applies for and receives the Building Bonus grant for a new home on a single-tier strata lot.

Purchase of a townhouse on a deposited plan

On 10 June 2020, John enters into an off-the-plan contract to buy a townhouse in a complex of 25 lots on a deposited plan. The development is already under construction and is expected to be completed by 22 December 2020.

On 15 December 2020, the relevant occupancy and building certifications are provided to the developer and they proceed to settlement with the buyers the following week.

John is eligible to receive the Building Bonus grant for a new home because he entered into an off-the-plan contract before construction was completed. He can apply for the grant after he is registered on the Certificate of Title for his townhouse.

Purchase of a high-rise apartment

Sally and Tom enter into an off-the-plan contract on 15 June 2020 to purchase an apartment in a 10 storey development that has not commenced construction.

They are not eligible to receive the grant because it does not apply to multi-tiered off-the-plan developments.

However, Sally and Tom will be eligible to receive the off-the-plan duty rebate of 75 per cent of the duty paid (up to $50,000) on the purchase of the apartment and can apply once they are the registered owners of the apartment.

Construction of detached homes sold off-the-plan

Homes East Pty Ltd, a land owner and developer, intends to develop some vacant land and will offer off-the-plan contracts for the houses in a new housing estate. Home East Pty Ltd obtains all necessary approvals on the development including construction of new roads.

Homes East Pty Ltd enters into off-the-plan contracts with buyers on 6 June 2020 for the purchase of the homes on small deposited plan lots. At completion, the developer obtains occupation permits and building approval certifications for the new homes and proceeds to settlement with the buyers on 1 June 2021.

Once each buyer is registered on their Certificate of Title, they will be eligible to receive the Building Bonus grant for a new home on a single-tier lot. Homes East Pty Ltd is not eligible for the grant on the construction of the homes because the houses were sold off-the-plan prior to completion.

Terms used

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Home

A building, affixed to land, that may lawfully be used as a place of residence.

Detached

A building that does not share wall or roof structures with other homes or buildings.  Buildings on adjoining lots can be built to the lot boundary without having shared walls if there is a separate wall on each lot's boundary. 

Eligible transferee

A transferee on a transfer of land who

  • is not named as the buyer in the contract and
  • qualifies for duty relief under the no double duty provisions in the Duties Act 2008 as
    • a person related to the buyer as referred to in section 43 and defined under section 42(2)
    • the real purchaser under an agency arrangement as defined under section 42(4)
    • a corporation yet to be incorporated or dormant corporation as defined under section 42(5) or
    • a managed investment scheme as defined under section 42(7).

Comprehensive home building contract

A contract under which a builder agrees to build a home on land from the inception of the building work to the point where the home is ready for occupation and if, for any reason, the work to be carried out under such a contract is not completed, includes any further contract under which the work is to be completed.

Foundations

The slab, stumps or other foundations on which the home will be situated.

Frequently asked questions

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How long will the scheme operate?

The Building Bonus Scheme starts on 4 June 2020 and ends on 31 December 2020.

How much is the grant?

$20,000

Can a person get a Building Bonus grant, a HomeBuilder grant, a First Homebuyers Grant and the first home buyer transfer duty concession?

Eligible first homebuyers will be able to access both State and Commonwealth grants, the existing $10,000 First Home Owner Grant and the first home buyer transfer duty concession, meaning potentially up to $69,440 could be provided to WA first homebuyers.

Who can apply for the grant?

  • Owner occupiers and investors
  • Australian citizens, permanent residents and foreign persons
  • Natural persons, corporations and trustees

You do not need to be living in WA to access the grant.

Do I need to live in the home to qualify for the grant?

No. This is different from the Commonwealth Government’s HomeBuilder scheme, which only applies to owner-occupiers.

Can I get more than one grant?

A grant is available for each new home built or purchased as long as the homes are on separate land titles. Only one grant will apply if more than one new home is built on a single lot.

Where is the application form?

An application form will be available on the website soon. 

When can I apply for the grant?

For a new home on vacant land (new detached dwelling) - apply when construction has started (foundations complete).

For new single-tiered dwellings such as villas and townhouses - apply when you are the owner of the property (registered on the certificate of title).

Is there any means test or property value cap?

No, the State’s Building Bonus Scheme does not include an income test or limit the value of the property.

What properties are eligible for the grant?

  • New detached homes constructed under a building contract
  • New relocatable homes
  • New homes constructed by an owner-builder
  • New single-tiered homes on strata plans such as villas and townhouses. For more information about these types of properties, see section 3(1) of the Strata Titles Act 1985
  • New single-tiered homes on other land survey types.

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 Commonwealth Government’s HomeBuilder scheme.
  • 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

When does construction need to start?

Construction must start within six months of entering into the building contract. This is different from the Commonwealth Government’s HomeBuilder scheme, which requires construction to start within three months of entering into the building contract.

When is construction considered completed?

For a single-tier development on a strata plan or other land survey type, construction is taken to have been completed on the date the strata plan or other land survey type is registered.

Can I receive the grant if I sign a contract to build a home on vacant land that I already own?

Yes.

Can first home owners receive the $10,000 First Home Owner Grant as well as the Building Bonus grant?

Yes. First home owners may also be eligible for a transfer duty concession on the purchase of their vacant land or new home.

Will the grant apply retrospectively for those who have recently signed a contract to build a home?

Contracts signed before 4 June 2020 are not eligible for the Building Bonus grant.

Does the amount of the grant depend on how much will be spent on building a new home?

No, the grant is a flat amount of $20,000.

Will the money be paid to the bank (if the person requires loan)?

No, the money is paid directly to the applicant.

Can you buy land and find a builder or do you need to buy a house and land package?

The Building Bonus scheme includes the purchase of house and land packages as well as signing a contract to build a home on your own vacant land.

Announcements

News story

Building Bonus Grants

The Premier, The Hon Mark McGowan and the Treasurer, The Hon Ben Wyatt, announced the introduction of two housing construction grants and an extension to the Off-the-Plan Duty Rebate Scheme.
Page reviewed 8 July 2020
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