Hi All,
I am looking for someone with a legal background or similar to help explain the new QLD building boost to me in regards to newly renovated properties.
The link is below:
http://boost.treasury.qld.gov.au/investor/faqs.php#heading-2809159538It says that new homes are eligible and then says this about new homes in the FAQ's;
What is a ‘new’ home?
A new home is a home that:
- has not been previously occupied or sold as a place of residence; or
- is a substantially renovated home (see below).
A home is a substantially renovated home if:
- the home is the subject of a contract for the purchase of the home; and
- the sale of the home under the contract is, under the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), a taxable supply as a sale of new residential premises as defined under section 40-75(1)(b) of that Act; and
- the home, as renovated, has not been previously occupied or sold as a place of residence.
Points 1 & 2 above are a bit over my head if someone can please explain them.
Basically I want to know if a house has been inhereted and then fully renovated with no one living in it at all, would I then be eligible for the $10'000 grant if I was to buy it off the vendor?
Thanks in advance,
Cheers,
Nathan
nguli wrote:Hi All,I am looking for someone with a legal background or similar to help explain the new QLD building boost to me in regards to newly renovated properties.
The link is below:
http://boost.treasury.qld.gov.au/investor/faqs.php#heading-2809159538It says that new homes are eligible and then says this about new homes in the FAQ's;
What is a ‘new’ home?
A new home is a home that:
- has not been previously occupied or sold as a place of residence; or
- is a substantially renovated home (see below).
A home is a substantially renovated home if:
- the home is the subject of a contract for the purchase of the home; and
- the sale of the home under the contract is, under the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), a taxable supply as a sale of new residential premises as defined under section 40-75(1)(b) of that Act; and
- the home, as renovated, has not been previously occupied or sold as a place of residence.
Points 1 & 2 above are a bit over my head if someone can please explain them.
Basically I want to know if a house has been inhereted and then fully renovated with no one living in it at all, would I then be eligible for the $10'000 grant if I was to buy it off the vendor?
Thanks in advance,
Cheers,
Nathan
Hi Nathan,
even as renovated it is not a new build. You will only get the grant for building contracts or new homes that you have purchased from the 1st August where the seller will no doubt need to provide a declaration that it is a new construction, the date of build etc quite often.
A renovated home, no matter how far renovated will not be eligible. It the house has been lived in (be it renovated or not) it does not class as a new home.
Sorry to be the bearer of bad news!
http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR20033/NAT/ATO/00001
see paras 53 to 83.
if you have substantially renovated a home than it may be eligible for the $10k.
does not matter is lived in before – it is the 'substantial renovation' which attacts the grant.
Ben, that is my understanding also …
Example :- We are a couple of weeks away from completion of a new build apartment block with a substantial renovated old qlder on the front.
My understanding all the apartments and the Queenslander attract the grant including the qlder if we sell any under $600k.
You need to drill down with the grant people to clarify their definition of "Substantially" in your circumstances.
Thanks for the replies guys. Still seems to be a mixed response though which is what I keep getting. I was hoping a lawyer or someone that has qualified for it or at least tried may be able to shed some light on it.
Cheers,
Nathan
nguli wrote:Hi All,I am looking for someone with a legal background or similar to help explain the new QLD building boost to me in regards to newly renovated properties.
The link is below:
http://boost.treasury.qld.gov.au/investor/faqs.php#heading-2809159538It says that new homes are eligible and then says this about new homes in the FAQ's;
What is a ‘new’ home?
A new home is a home that:
- has not been previously occupied or sold as a place of residence; or
- is a substantially renovated home (see below).
A home is a substantially renovated home if:
- the home is the subject of a contract for the purchase of the home; and
- the sale of the home under the contract is, under the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth), a taxable supply as a sale of new residential premises as defined under section 40-75(1)(b) of that Act; and
- the home, as renovated, has not been previously occupied or sold as a place of residence.
Points 1 & 2 above are a bit over my head if someone can please explain them.
1. Means that if the home is for sale with a contract of sale. Probably would exclude transfers from Trustee to beneficiary etc
2. New property, or substantially renovated property has GST applicable on the sale. So if this property price included GST in the contract of sale it would probably meet this requirement.
Notice they say "and" after each line. That means all requirements would need met. I think it would be unlikely that the seller would want to charge you GST because that would be 10% he would have to give to the ATO. So he would have to increase the price or he would be out of pocket.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
