The Seniors Housing Grant (SHG) was a once off grant of up to $8500, available to natural persons, aged 60 years or more, who purchased or built a new home valued at up to $400 000 and phased out for eligible homes valued at up to $450 000 for home owners. The SHG was not available in addition to the First Home Owner Grant (FHOG).
The SHG applied to:
a contract to purchase a new home entered into between 1 July 2014 and 30 June 2016 (inclusive);
a comprehensive home building contract for a new home entered into between 1 July 2014 and 30 June 2016 (inclusive) where the contract stated that the building work would be completed within 18 months of commencement or the building work was actually completed within 18 months of commencement;
a contract for the purchase of a new home off-the-plan entered into between 1 July 2014 and 30 June 2016 (inclusive) where the contract stated that the building work was actually completed on or before 31 December 2017; and
an owner builder where construction of the new home commenced on or after 1 July 2014 and before 30 June 2016.
The SHG was available to natural persons aged 60 years and over who purchased or built a new home as their principal place of residence.
Only one SHG was payable in relation to a particular new home and at least one of the applicants must have:
satisfied the Commissioner that they are aged 60 years or over; and
occupied the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months after the completion of the eligible transaction.
In addition an applicant was ineligible to receive a SHG if the applicant or their spouse/domestic partner had previously received and retained a SHG.
The market value of a property included the market value of the land, the home and any other improvements.
Craig bought a block of land in 2007 which is still vacant and is now valued at $200 000. Craig signs a comprehensive home building contract to build a new home on the land for consideration of $300 000. Craig will not be eligible for the SHG because the value of the home will be $500 000 which is above the value cap of $450 000.
Where the consideration for an eligible transaction was less than $8500 the amount of the SHG did not exceed the consideration for the eligible transaction.
Mike buys a new home from his brother that is valued at $375 000 for a consideration of $1. The amount of the SHG will be $1.
A property value cap applied. The property value cap was $450 000 based on the market value of the property purchased or built.
In the case of comprehensive home building contract the market value was:
the sum of the consideration for the building contract and the market value of the land on which the home was to be built as at the time the contract was made; or
where the consideration for the building contract is less than actual costs, the sum of the actual costs to build the home and the market value of the land on which the home was to be built as at the time the building contract was made.
NOTE: where a comprehensive home building contract included specific values for items that are not necessary for occupation of a place of residence, RevenueSA may have deducted these components from the consideration payable for the building work when determining the market value of the property. Some items that are considered not necessary for occupation as a place of residence include driveways and paving, landscaping, air conditioners and built in robes. See Information Circular 64 for more details.
In the case of an owner builder the market value was:
A SHG of $8500 was available for new homes where the market value did not exceed $400 000, and phased out for new homes with a market value between $400 000 and $450 000 at a rate of $17 for every $100 in excess of $400 000.
The table below outlines the maximum grant that was available in increments of $5000 increases over $400 000.
|Up to $400 000||$8500|
|$450 000 and above||Nil|
It should be noted that if the consideration for the purchase a new home was less than $8500 (e.g. where a new home was inherited), the amount of the SHG paid did not exceed the consideration.
Only one SHG was payable in relation to a particular new home. That is, where the SHG has been approved and paid in relation to a property, no further SHG can be paid in relation to that property, unless that previously paid SHG has been repaid.
In addition an applicant was ineligible to receive a SHG if the applicant or their spouse/domestic partner has previously received and retained a SHG.
Eligible transactions must have been entered into between 1 July 2014 and 30 June 2016 (inclusive)
If you have entered into a comprehensive home building contract to build a new home:
The contract must state that the eligible transaction must be completed within 18 months after the laying of the foundations for the home is commenced or, in any other case, the eligible transaction is completed within 18 months of after the laying of the foundations for the home is commenced.
If a completion date is not stated in the contract, you cannot receive the SHG until the building is ready for occupation as a place of residence.
If you have commenced building a new home as an owner builder:
The transaction is completed within 18 months after its commencement date.
You cannot receive the SHG until the building is ready for occupation as a place of residence.
The Commissioner may, in a particular case, extend the time within which an eligible transaction must be completed if the Commissioner considers there are proper reasons for doing so.
If you have entered into a contract to buy a new home off-the-plan:
The contract states that the eligible transaction must be completed on or before 31 December 2017 or in any case, the eligible transaction is completed on or before that date.
You cannot receive the SHG until the building work has been completed and settlement has occurred.
The market value of the home to which the eligible transaction relates was less than $450 000.
The following transactions were ineligible for the SHG:
1. Where the Commissioner is satisfied that the contract that formed the basis of the eligible transaction replaces a contract made before 1 July 2014 and that earlier contract was:
a contract for the purchase of the same home; or
a comprehensive home building contract to build the same or a substantially similar home;
2. Where the Commissioner is satisfied that a contract that formed the basis of an eligible transaction for the purchase (or purported purchase) of a new home does not constitute a genuine sale of the new home.
For these purposes, the Commissioner may take into account:
whether the parties to the contract are close associates;
whether the parties are otherwise not at arms length; or
such other matters as the Commissioner considers appropriate.
Two 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.
Jack who is 61 years of age built a new home in 2013 which is valued at $425 000 and is yet to be occupied as a place of residence. Jack enters into a contract to sell 5% of his interest in the home to his wife for $21 250. The Commissioner becomes satisfied that the contract does not constitute a genuine sale of a new home and does not authorise payment of SHG.
The application of the above criteria will be considered on a case by case basis taking into account all of the facts and circumstances.
The date the SHG was paid depended on whether you built or purchased, and if you applied through an Approved Agent or through RevenueSA. The following table details the various scenarios.
|Type of transaction||Applying through||Payment of grant|
|Purchase of a new home or an off-the-plan home||Approved Agent||At date of Settlement|
|RevenueSA||Within five days after approval of the application, following proof of lodgement for registration with the Lands Titles Office (please complete a Confirmation of Settlement form).|
|Contract to build||Approved Agent||On date of the first progress payment by Approved Agent|
|Within five days of lodging the first progress payment invoice and approval of the application by RevenueSA|
|Owner builder||Approved Agent||When application with required supporting evidence is provided to the Approved Agent.|
|RevenueSA||Within five days of RevenueSA approving the application lodged with required supporting evidence.|
An application must have been received within 12 months of the completion of the eligible transaction.
Applications could be lodged with the financial institution providing finance as part of buying or building a home, if the financial institution is Approved Agent.
Documentary evidence may have been required to substantiate claims for the SHG.
There are substantial penalties for providing incorrect or misleading information in connection with an application for the SHG. RevenueSA conducts investigations and compliance checks to ensure SHG was only provided to entitled applicants
RevenueSA undertakes both random and targeted auditing of applications with the benefit of current and historical data held by commercial organisations and by state and territory agencies.
The frequently asked question page provides additional information.