Definition of Housing Construction Grant Terms

The definitions used below are intended as a guide. The precise meaning of the terms should be taken from the reading of the First Home and Housing Construction Grants Act 2000


APPROVED AGENTAn organisation approved by RevenueSA that is authorised to process applications for the First Home Owner Grant.


CLOSE ASSOCIATETwo persons are considered close associates if:
  • one is a relative (spouse/domestic partner; parent or remoter lineal ancestor; son, daughter or remoter ancestor; or brother or sister) of the other;
  • they are related bodies corporate (within the meaning of the Corporations Act 2001 (Cwlth));
  • one is a body corporate and the other is a director, manager or officer of the body corporate;
  • one is a body corporate (other than a public company whose shares are quoted on a financial market) and the other is a shareholder in the body corporate;
  • one has a right to participate (otherwise as a shareholder in a body corporate) in income or profits derived from a business conducted by the other;
  • they are in partnership; or
  • one is a beneficiary under a trust or an object of a discretionary trust of which the other is a trustee.


COMMENCEMENT DATE OF THE ELIGIBLE TRANSACTIONThe commencement date of an eligible transaction is:
  • in the case of a contract:
    • the date when the contract is made;
  • in the case of the building of a home by an owner builder:
    • the date when laying the foundations for the home commences; or
    • another date the Commissioner of State Taxation considers appropriate in the circumstances of the case.


COMMISSIONERCommissioner of State Taxation, RevenueSA.


COMPLETION OF THE ELIGIBLE TRANSACTION

Subject to any qualifications prescribed by legislation, an eligible transaction is completed when:

  • in the case of a contract for the purchase of a home:
    • the purchaser becomes entitled to possession of the home under the contract; and
    • if the purchaser is to obtain a registered title to the land on which the home is situated - the necessary steps to obtain registration of the purchaser's title have been taken;
  • in the case of a contract to have a home built the building is ready for occupation as a place of residence;
  • in the case of the building of a home by an owner builder - the building is ready for occupation as a place of residence.



COMPREHENSIVE BUILDING CONTRACT/CONTRACT TO BUILDA contract where a builder agrees to build a home, from the time the building starts to when it is finished and is ready for occupation.


CONSIDERATIONThe total price or amount used for the purchase or building of the home.


ELIGIBLE TRANSACTIONAn eligible transaction is:
  • a contract made between 15 October 2012 and 31 December 2013 (inclusive) for the purchase of a new home in South Australia;
  • a comprehensive home building contract made between 15 October 2012 and 31 December 2013 (inclusive) by the owner of land in South Australia, or a person who will on completion of the contract, be the owner of land in South Australia, to have a home built on the land;
  • the building of a home in South Australia by an owner builder if the building work commences on or after 15 October 2012 and before 1 January 2014.


GENUINE FARMThe land is to be used for primary production by the person seeking the HCG; and the land is, by itself, or in conjunction with other land owned by that person, capable of supporting economically viable primary production operations.The relevant component of the genuine farm for the purposes of determining the value for the HCG is the new home and its curtilage or the part of the land that is to constitute the site and curtilage of the home that is to be built.


HOMEA building, affixed to land, that may be lawfully used as a place of residence and is, in the Commissioner’s opinion, a suitable building for use as a place of residence.


HOME OWNERA person who holds a relevant interest in property.


MARKET VALUEIn the case of a contract for the purchase of a new home:
  • the consideration for the purchase of the home: or
  • where that consideration is less than the market value, then the market value of the property at the time that the contract is made.
In the case of a comprehensive home building contract:
  • the sum of the consideration for the building contract and the market value of the property on which the home is to be built, as at the time when the building contract is made; or
  • where the consideration for the building contract is less than the actual costs, the sum of the actual costs to build the home and the market value of the property on which the home is to be built as at the time when the building contract is made.
In the case of an owner builder:
  • the market value of the property on which the home is situated at the time the home is completed and ready for occupation as a place of residence.
Please note: for the purposes of determining the market value of a home on a genuine farm, the relevant component of the farm will be taken to constitute the property on which the new home is situated or to be built.


NEW HOMEA home that has not been previously occupied or sold as a place of residence, including a substantially renovated home.


OFF-THE-PLANA contract for the purchase of a home on a proposed lot in an unregistered plan of a subdivision of land.


OWNER BUILDERAn owner of land who builds a home or has a home built on the land without entering into a contract to build.


RELEVANT INTERESTA person with a 'relevant interest' can be described generally as someone who will have a legal entitlement to the home being bought or constructed. Usually this will be the person(s) listed on the Certificate of Title. Each person with a 'relevant interest' must be listed as an applicant on the application form.


RESIDENTIAL PROPERTYLand on which there is a building which is a lawfully occupied residence or suitable for occupation as a residence.


SUBSTANTIALLY RENOVATED HOMEA home is a substantially renovated home if:
  • the sale of the home is, under the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), a taxable supply as a sale of new residential premises within the meaning of Section 40-75(1)(b) (Meaning of new residential premises); and
  • the home, as renovated, has not been previously occupied or sold as a place of residence.