Western Australia Construction Incentives

Western Australia Construction Incentives

Current Home Buyer Incentives available in Western Australia

To help you understand the current incentives available as part of both the Federal Government and the WA Government’s $125 million stimulus package, we have listed the different grants available with some information to help consider which options may be right for your situation.

The three grants all have different eligibility criteria and only Australian Citizens are eligible for the $25,000 Federal Government HomeBuilder Grant. There are contractual time limitations that require fulfilment that must be adhered to.

The Western Australian State Government is offering both a $10,000 First Home Owners Grant and the $20,000 Building Bonus Grant, both of which are open to Australia Citizens and Permanent Residents who reside in Western Australia.

This means, as a prospective homebuyer residing in WA, there are currently three grants available.

  • For first home buyers, you may be eligible for a total of $55,000 assistance
  • As a subsequent home buyer, you may be eligible for a total of $45,000 assistance
  • As an investor, you may be eligible for a total of $20,000 assistance

What are the different grants available?

The Australian Copyright Council states the following:

“House plans, including those produced by project home companies, are protected by copyright.

Generally, a person who commissions someone to draw up a house plan will have an implied licence to construct a building based on the plan.

Ideas, styles and techniques are not protected by copyright, it is the form in which a particular plan expresses an idea or style that is protected.”

But what does this actually mean?

The $10,000 WA Government First Home Owners Grant, WA Residents only

 

  • Available to both Australian Citizens and Permanent Residents who reside in WA over the age of 18, although those under 18 may apply for an exemption
  • Can be used towards building or buying a new residential property that is your main place of residence
  • Is not means-tested
  • Applicants and their spouses/ de-factos must not have previously owned property.
  • Capped at $750,000 South of the 26th parallel (Perth Metro) and $1,000,000 North of the 26th parallel.

More information on FHOG eligibility can be found here.

 

The $20,000 WA Government Building Bonus Grant, WA Residents only

 

  • Available to both owner-occupiers and investors
  • No caps on property value
  • Not means tested
  • Also available to homebuyers purchasing a residences in single-storey developments, including townhouses, already under construction
  • Available to both Australian Citizens and Permanent Residents who reside in WA over the age of 18

More information on the Building Bonus Grant eligibility can be found here.

The $25,000 Federal Government HomeBuilder Grant

  • For new builds and substantial renovations by owner-occupiers
  • Available to both first time and subsequent home buyers
  • Applicants must spend at least $150,000 towards an eligible renovation before a grant is approved.
  • Subject to a property value cap
  • New builds capped at $750,000
  • Renovations approved between $150,000 and $750,000, but the property value must not exceed $1,500,000
  • Not available to be used towards investment properties
  • Not available to owners who are building or renovating without hiring builders
  • Subject to a household based income cap
  • Income capped at $125,000 for a single income household
  • Income capped at $200,000 for a dual income household
  • Must sign a contract with a builder before December 31st, 2020
  • Must commence building within 3 months of the contract date
  • Available to Australian Citizens over the age of 18
  • Not available to Permanent Residents
  • Available to individuals, unavailable to a company or trust.

More information on the Federal Government HomeBuilder Grant can be found here.

Stamp Duty Exemptions

 

As a first home buyer in WA, it is also worth noting that you will be exempt from having to pay stamp duty on properties valued at under $430,000, as long as the property is also your main residence.

This stamp duty exemption also applies to empty land plots valued under $300,000.

Concessional stamp duty rates can be applied to properties valued above $430,000 up to and amount of $530,000, as well as empty land plots valued between $300,000 and $400,000,

Exemptions may also be eligible between spousal transfers and family owned farming properties.

The existing stamp duty rebate has now also been extended to apply to apartments that are currently unsold.

 

Please check further details in the links provided, or get in touch with DN Studio to have a chat about the extra financial assistance that may be available to help you start sooner on your new home or investment project.

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Copyright Laws – Architecture and Building

Copyright Laws – Architecture and Building

Copyright Laws, Architecture and Building.

The subject of copyright isn’t an area we automatically connect with building our dream home or new investment.

Like every profession that works with artistic and intellectual property though, house and business plans also are privy to copyright.

If someone has put the time and work into designing something, copyright becomes applicable. How this is handled and ownership to copyright of building plans can vary depending on your contractual agreements. It’s best to ensure you have this area fully covered and clear from the start of a project to avoid any long term headaches or costly legal issues arising.

Architects, architectural designers, draftspeople and building services may handle this area differently. This is also a factor that varies depending on if your plans are being drawn up specifically for you or from pre-drawn plans (as is often used in project homes, estates, apartments and townhouses).

It is imperative for the person engaging these services to look into how plans are copyrighted, as well as ensuring that they are not impinging on anyone else’s copyrights.

So what are the laws? How do they work?

The Australian Copyright Council states the following:

“House plans, including those produced by project home companies, are protected by copyright.

Generally, a person who commissions someone to draw up a house plan will have an implied licence to construct a building based on the plan.

Ideas, styles and techniques are not protected by copyright, it is the form in which a particular plan expresses an idea or style that is protected.”

But what does this actually mean?

    1.      That any house or commercial business plan is protected by law and that the copyright will be applied automatically to the person who creates the work, unless otherwise negotiated.
    2.       In theory, the person who asks (commissions) someone to draw plans for their home or commercial property has an “implied” licence to build that plan. This can be a grey area though. It’s really important to clarify this with your design and building team from the outset, and read and fully understand the fine print of any contract before signing the dotted line.
    3.      An idea, particular style or technique is open for use by anyone. This may be having a style of large arched windows overlooking an alfresco tiled patio with a water feature, which many homes contain, and copyright would be unfair to the many who require usage of this styling.  If someone has drawn a detailed plan of this expressed in a certain form, this is subject to copyright. In simpler terms, anyone can draw an apple, but to directly copy someone else’s style of a drawing of an apple can be a breach of copyright laws. Taking inspiration from existing styles is common and widespread, it’s just important to ensure that your plans express the inspiration in a way that is unique to your design, unless you have permission to do otherwise.

There are of course only so many ideas and combinations of elements that can be expressed over time without some form of repetition occurring, which is why defining the line between explicit copyright and incidental similarity need to be well considered.

In the majority of cases, the person who created your house or commercial building plans will have automatic copyright to them even if they haven’t added a © symbol to them. This isn’t a necessary element under Australian law because the original creator of any creative or artistic work automatically holds the copyright, unless a legal agreement has been drawn up to designate copyright holding and terms with the original copyright owner. For a basic overview on general copyright laws within Australia, the WA State Library has compiled a brief guide available here.

At the same time, it wouldn’t be possible or practical for homes and commercial buildings to be built if there was no ability to use the plans that have been created by someone for that purpose. This means that in the majority of cases, if someone has drawn up plans for you for the purpose of building something, that generally speaking, you will have permission, or licence, to use these plans for that purpose.

There are always exceptions to this idea, and people have found themselves in legal disputes in this area for a variety of reasons. Implied use of plans does not guarantee anything legally, which is why with any important life decisions, the old adage to get it in writing applies here too!

It gets more interesting and the area even more tricky when someone draws up an original plan and then takes this to a professional. The purpose of creating a solid plan or more accurate design is most likely the goal here and the original creator may not have the skill level to do this.

Does this mean the original creator holds a copyright of the plan after the professional they hire works on it?

In some ways yes. The original creator may have an interest in the copyright. If you have a very particular, innovative or specific design that you require a professional to complete, it is wise to agree on terms before undertaking your project.

Why? Because Australian law states that unless explicitly defined in writing or other legally sound agreement, that the copyright holder of your plans is the person who creates the actual plan that a building is built upon, but does take into account the contributions made by preliminary creative input of others.

This may apply if someone else wanted to use a plan that both you and a professional have agreed shares copyright,  that they would need to seek permission from both parties to obtain rights to do so.

The ACC also says “ if the plan incorporates the essential features of your sketch, you may have underlying rights in the builder’s plan, since copying the builder’s plan will indirectly reproduce your plan. In these cases, someone else who uses the plan (such as another client of the professional) might need permission from both you and the builder.

Of course, if your sketch incorporates essential or distinctive elements of another person’s sketch, plan or house, you are likely to need permission from the copyright owner both to include those elements in your sketch and to authorise the builder to reproduce it.”

So once again, it’s important to make sure everyone is on the same page and in agreeance to who owns what before a project gets underway.

This saves any future headaches that may arise due to different parties input, or with future use of the plans drawn up.

DN Studio are able to discuss this with you in more detail if you have any questions or concerns in this area.

There is also a fantastic educational handout available from the ACC that you can download here, as well as lots more information and case studies that may add to your knowledge in this area. This is current as of the time of writing this article (July 2020), but please ensure that you access the most updated information available on their site, as it can change from time to time.

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