Queensland Building Boost Grant

[Ace in the Hole]

Ok, I just went to this website to see if there are any updates:
Queensland Building Boost Grant eligibility tester
http://www.budget.qld.gov.au/current-budget/tax-reform/qnhb-grant-decision-tree.shtml

My answer was yes to all questions.
Result was:
Based on the information provided, you may be eligible for the Queensland Building Boost grant.

Your eligibility can only be determined after you have completed the application form. The Office of State Revenue will then make a decision based on all facts and circumstances.

The grant application form is being developed.

Please print this eligibility tester for your records.

Not much help.
Can't fill out an application form until the grant application form has been developed....

Suppose we should just proceed and assume we will get the grant, then fill out the application if and when it ever gets done.

 

[NedKelly]

Now you know the frustration people are having trying to get flood compensation out of the Queensland government. The ridiculous thing is they have bureaucrats coming out of there ears up there in Brsbane.

 

[MichaelW]

Now to get around the issue of being valued below 600k.
Hope they will accept land purchase + build costs as a way of calculating the "value" of the property, as this will get me below 600k each dwelling.

Seems like they do...

Is the unencumbered value or consideration paid for the property less than $600,000?

I like that consideration paid bit, but it is still a bit ambiguous. I look forward to their actual grant application form being available as it no doubt will have details on the individual criteria within it.

Cheers,
Michael

 

[BenQld]

yes, the OSR website is very vauge. I want to know exactly how they are going to calculate the $600k so I can make sure I am eligible.

This government both federal and state seem to have good ideas, but execute them very poorly.

Ben

 

[BenQld]

There is a website now

http://boost.treasury.qld.gov.au/

its still just as vauge as the previous one, but I guess the government needed to pull their finger out and appear to be doing something given that this is supposed to come into effect as of monday.

It now says that the "land value" is;

How is land value determined?
Evidence of the value of the land can be provided by an independent third party valuation, market appraisal by a local real estate agent or, in some cases the site valuation issued for the land by the Valuer-General under the Valuation of Land Act 2010 may be all that is required.

So I am assuming the yearly letter you get from the land dept is what you can use for the valuation.

And as for the house value ?

Contract to have a home built
The sum of the following must be less than $600,000:

the consideration for the building work
the value of the land when the contract is made.

So does this mean what it would be valued at once its finished, or is the $600k the land value + building contract value regardless of what its worth at the end.

ie if you have $20 - $30k of variations during the build, are these taken into effect ? or if you pay for stuff outside of the main building contract, ie organise kitchen, A/C.....yourself.

Ben

 

[Ed Barton]

and for the person who is buidling multiple properties posting here..

What happens if the number of grants paid or payable to me (alone or together with related persons) is five or more?

You may obtain the grant more than once. However, the Commissioner of State Revenue has the discretion to refuse an application if satisfied that approval would not further the objective of the grant. The discretion would apply only if the number of grants paid or payable to you, or to you and related persons, is five or more (including the current application).

If you are unsure about whether or not a proposed transaction is within the policy objective of the grant, you may apply to the Commissioner for a private ruling for the transaction. You must set out all relevant facts, including why you consider that the transactions should be eligible for the grant.

 

[BenQld]

I dont see why its an issue, as the policy objective is to build more houses and stimulate the market, and you are doing that.

but because they are so vauge, it makes it easy for them to deny it.

Ben

 

[NedKelly]

If you look at the hoops the flood victims are having to go through just to get denied you can bet your bottom dollar that they will do their darnedest to find a reason to refuse.

 

[marg4000]

If you look at the hoops the flood victims are having to go through just to get denied you can bet your bottom dollar that they will do their darnedest to find a reason to refuse.

And don't even get me started on the Health Dept payroll fiasco!!!

I would not trust this Government to run a chook raffle.
Marg

 

[BuildingBoost]

Building Boost HELP!

This can be pretty confusing based on the government website, but you can claim the grant on every ‘new’ property you purchase or build as long as someone lives in it.

If you are an investor, you must get tenants in or live there for a period of time yourself. If you buy 10 townhouses, you can claim the grant on all these properties as long as you meet this criteria.

For more information, try www.buildingboostgrantqld.com.au.

 

[MichaelW]

So how do they calculate the value of the house construction for owner builders?

Cheers,
Michael

 

[BuildingBoost]

Help getting your $10,000 grant

This can be pretty confusing based on the government website, but you can claim the grant on every ‘new’ property you purchase or build as long as someone lives in it.

If you are an investor, you must get tenants in or live there for a period of time yourself. If you buy 10 townhouses, you can claim the grant on all these properties as long as you meet this criteria.

For more information, try www.buildingboostgrantqld.com.au.

 

[tcocaro]

pretty sure it is only payable on a transfer of property or the signing of a building contract. I would be surprised if it includes owner builders who neither transfer property or sign a contract with themselves.

So how do they calculate the value of the house construction for owner builders?

Cheers,
Michael

 

[Ed Barton]

pretty sure it is only payable on a transfer of property or the signing of a building contract. I would be surprised if it includes owner builders who neither transfer property or sign a contract with themselves.

it includes pretty much anyone. trusts and companies and definitely owner builders.

from the site...

If the home is being built by the owner, the actual costs to the owner excluding allowance for the owner's own labour as well as the land must be less than $600,000.

 

[tcocaro]

Are you 100%? I very very very very much doubt it or else you will sign a contract with yourself????

So if i own a block of land and I am the owner builder I will rock up with a land title in my name, a building contract with the client\builder in my name and expect 10k?

This cannot possibly be the case or else a project home builder sitting on say 20 blocks of land selling finished houses will simply sign 20 contracts to himself?

I am pretty sure this is perverting the intent of this boost... i could be wrong.

it includes pretty much anyone. trusts and companies and definitely owner builders.

from the site...

 

[Ed Barton]

Are you 100%? I very very very very much doubt it or else you will sign a contract with yourself????

So if i own a block of land and I am the owner builder I will rock up with a land title in my name, a building contract with the client\builder in my name and expect 10k?

This cannot possibly be the case or else a project home builder sitting on say 20 blocks of land selling finished houses will simply sign 20 contracts to himself?

I am pretty sure this is perverting the intent of this boost... i could be wrong.

i'm sure your example of the project builder is perverting the intent. but it's on the website in several different places. click on the link from a few posts ago. bottom right hand corner....

Whether you are planning on buying the new property, townhouse or apartment to live in or to rent to tenants, as long as it is occupied as a residency, you may be eligible for the Building Boost grant from the QLD Government. This also includes owner builders.

 

[tcocaro]

perhaps buying from an owner builder? I just cannot get my head around this if the grant is paid if NO transfer of any kind is included. It will be virtually impossible to police\check or anything. Lets just say I am a developer building 5 townhouses havent sold any by the time the grant ends, I will be insane not to say there was a "building contract" (not a sale) with my wife for 5x townhouses.

no idea.

i'm sure your example of the project builder is perverting the intent. but it's on the website in several different places. click on the link from a few posts ago. bottom right hand corner....

 

[MichaelW]

Its a building grant, not a sales grant. There doesn't need to be a transfer of title.

The Building Boost grant in QLD pays $10,000 to any eligible person or corporation buying or building a new property. This is valid for any new home, townhouse or apartment for the purpose of living in or investment that has a total value (including land) of under $600,000. If you have been considering purchasing a new house, townhouse, apartment or building on your investment land, now is a great time.

So, if I buy a block of land then commence my construction of a house on it before the end of Jan 2012 then I'm entitled to the $10K building boost grant. My only question was how do I justify my costs to the grant body when claiming the $10K?

e.g. I pay $400K for the dirt. How do I prove my owner builder construction cost will be less than $200K? Its easy if its a project home and land package. Not so easy as an owner builder.

Specifically, from that website here:

If the home is being built by the owner, the actual costs to the owner excluding allowance for the owner's own labour as well as the land must be less than $600,000.

At least I don't have to make an allowance for my labour so it should all be good.

Some final facts:

If the property is being built by an owner builder, the building work must start between 1 August and 31 January (this is usually considered the laying of foundations for the home). Building work must be completed within 18 months of work commencement.

All good...

Cheers,
Michael

 

[tcocaro]

I understand that its a building grant but I am pretty sure the intent was to build for clients not yourself. Let me give you an example...

Heavily renovated properties are included correct? So if I renovated my home I should get 10k?

If it is ill be "rennovating" all my properties.

This example is no different from owner\builder your own house?

When is it payable? on completion of works, start? middle... what constitutes end of works as an owner builder? lockup, certificate? landscaping?

I am 100% sure this grant excludes "developments of any kind" no matter how you try to dress building townhouses.

I feel a lot of the questions here relate to stretching the intent of this boost and hence find ourselves in a grey area.

very confused. Here is another example...

Building 50 units average price $220k (stamp duty = $6,125.00) I in a seperate entity to that of my development company e.g. as myself buy all 50! then sell them to buyers later on completion say late next year. I will still be up roughly 4k each unit after stamp or 200k. ??

Its a building grant, not a sales grant. There doesn't need to be a transfer of title. So, if I buy a block of land then commence my construction of a house on it before the end of Jan 2012 then I'm entitled to the $10K construction boost grant. My only question was how do I justify my costs to the grant body when claiming the $10K?

e.g. I pay $400K for the dirt. How do I prove my owner builder construction cost will be less than $200K? Its easy if its a project home and land package. Not so easy as an owner builder.

Cheers,
Michael

 

[Ed Barton]

Its a building grant, not a sales grant. There doesn't need to be a transfer of title.



So, if I buy a block of land then commence my construction of a house on it before the end of Jan 2012 then I'm entitled to the $10K building boost grant. My only question was how do I justify my costs to the grant body when claiming the $10K?

e.g. I pay $400K for the dirt. How do I prove my owner builder construction cost will be less than $200K? Its easy if its a project home and land package. Not so easy as an owner builder.

Specifically, from that website here:



At least I don't have to make an allowance for my labour so it should all be good.

Some final facts:



All good...

Cheers,
Michael

the faq says by submitting your documentation. presuming they mean receipts, it would be easy to just not submit some receipts, so i imagine it's going to be hard to police.