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Department of State Growth

Ancillary Dwelling Grants Program

The Department of State Growth is now accepting applications for the Ancillary Dwelling Grants Program.

The $2.5 million program is a Tasmanian Government initiative to help boost housing supply, support home ownership and put downward pressure on rents.

Grants of $10 000 are available to the first 250 eligible applicants that submit a complete application.

To be eligible for funding applicants must construct a new ancillary dwelling and make it available for long-term rent for at least two years.

If you have queries email the grants team at adgrant@stategrowth.tas.gov.au

Opens: 3pm, 30 June 2021
Closes: 3pm, 30 September 2021, or until the program is fully subscribed (whichever comes first)

Successful applicants will be notified of the outcome within 21 days.

  • Eligibility
  • Eligibility

    You must meet all the eligibility criteria to apply for a grant.

    You may be asked to supply documentation to support your eligibility claims as part of the application process, or as part of an audit process to confirm your claims are true and correct.

    1. Applicants must be the owner(s) of the land upon which the ancillary dwelling is built.

      All interested parties (i.e. all title holders) must be named as applicants.

    2. Applicants that are natural persons must be aged over 18 years.

      The applicant does not need to be a natural person. However, an applicant that is a natural person must be aged over 18 years. The program will be open to all types of entities including, for example, companies and trusts which hold residential property.

    3. There may only be one grant issued per title.

      This will prevent a landowner from claiming the grant to build an ancillary dwelling on a property where a previous dwelling has been built with Ancillary Building Grant assistance.

    4. Applicants must not have claimed the grant previously.

      Applicants are eligible for one grant only under this program. This is to prevent a landowner claiming the grant for multiple properties. This criterion will ensure the grant is distributed to the greatest number of applicants.

    5. Applicants cannot apply for the grant in conjunction with a HomeBuilder grant and/or First Home Owner Grant (FHOG) build.

      Applicants cannot claim this grant for the same title where building is currently underway and funded by a HomeBuilder grant and/or FHOG.

      Applicants that have previously claimed HomeBuilder and/or FHOG in relation to their principal place of residence or a previous residence are eligible for this grant.

    6. The dwelling must be an ancillary dwelling.

      That is, it must be a dwelling:

      • on residential property which only has a single dwelling;
      • with a floor area of less than 60m2;
      • that is self-contained and separate to a primary dwelling (detached, semi-detached and internal); and
      • that shares access and parking, and water, sewerage, gas, electricity and telecommunications connections and meters with that primary dwelling.

    7. The ancillary dwelling must be a new project.

      To be awarded a grant the project must deliver a new ancillary dwelling. This may include a standalone structure or the conversion of all or part of an existing structure to create an ancillary dwelling.

      To qualify, the building works must neither have commenced, nor been contracted, prior to the announcement of this grant program on 16 March 2021.

    8. The value of the works to be undertaken must exceed $20 000

      Applicants must spend more than $20 000 on the ancillary dwelling project (that is, the $10 000 grant plus at least $10 000 of the applicant’s own funds) and may need to provide evidence of the total expenditure.

    9. The ancillary dwelling must be completed within two years of signing of the grant deed.

      The grant deed will require applicants to state their intention to complete building of the ancillary dwelling within two years of signing of the grant deed.

    10. Following completion of the build, the ancillary dwelling must be made available for long‑term rental and rented within three months.

      The grant deed will require applicants to state their intention to lease the ancillary dwelling as part of a long-term tenancy arrangement within the meaning of the Residential Tenancy Act 1997, for a fixed cumulative period of at least 24 months. This grant does not support building ancillary dwellings for short term holiday rentals.

    11. The tenancy agreement must be on arm’s length terms in relation to the rent amount being charged.

      There will be no requirement for the applicant to advertise through a particular mechanism or to provide the lease to a third (unrelated) party to fulfil this requirement. However, the agreement must be made on arm’s length terms having regard to current market conditions.
  • How do I apply?
  • How do I apply?

    Before you submit your application, you must:

    • ensure the applicant name(s) match the name(s) on your property title;
    • ensure you have not commenced building the ancillary dwelling before 16 March 2021; and
    • attach one of the following to your application:
      • a planning permit*
      • a ‘certificate of no permit required’
      • a letter from your council advising that you do not require a planning permit

    Applications that do not meet the above requirements will not be accepted

    *If you have applied for a planning permit and are waiting to receive it please attach a lodgement receipt to your application. You will need to upload the planning permit once you receive it.

    Download the program guidelines here

    Apply now online

    How do I apply - click to download text

  • Grant payment
  • Resources
  • FAQs
  • FAQs

    Q:

    Once I apply how long will it be before I find out if I have been successful?

    A:

    You will be notified of the outcome within 21 days of submitting an application.

      

    Q:

    Does pre-registering an interest put me first in line given it is a first come first served basis?

    A:

    No, applications are assessed based on when they are received.

    Applications open Wednesday 30 June 2021 at 3pm.

      

    Q:

    Is there a minimum amount of money that I have to spend?

    A:

    Yes. The minimum total project value to be eligible for the grant is $20 000. This means you must spend at least $10 000 in addition to the grant amount.

      

    Q:

    If I am successful in receiving a grant when will the money be paid?

    A:

    The grant is for a total of $10 000 (plus GST where applicable) which is paid in two instalments.

    The first instalment of $5 000 will be paid when you submit a statutory declaration of building commencement and any relevant council permits within 6 months of signing the grant deed.

    The second instalment of $5 000 will be paid when you submit a certificate of occupancy and a signed lease.

      

    Q:

    How long do I have to build my ancillary dwelling?

    A:

    From the date you sign the deed you have six months to demonstrate that you have commenced building and 24 months to complete the project. You should consider before applying whether you will be able to meet these timeframes.

      

    Q:

    What are the lease requirements?

    A:

    Once you’ve completed building the ancillary dwelling, you must lease it to tenants at a market rate for at least two years in total. This does not require a single lease for 24 months – you could, for example, have two consecutive 12 month leases.

    Within three months of completing the ancillary dwelling you must provide the Department with a signed lease agreement.

      

    Q:

    What happens if I can’t meet one of the requirements in the grant deed (such as meeting the completion timeframe or providing a signed lease)?

    A:

    By signing the grant deed you are agreeing to meet the requirements of the grant program. Failure to meet these requirements will result in you having to pay back money you have received. You should consider before applying whether you will be able to meet the requirements of the program.

    If it looks like you will not be able to meet one of the requirements you are encouraged to contact the Department as early as possible to discuss your options.

      

    Q:

    What approvals do I need?

    A:

    Depending on the location of your property you may need a planning permit. Some councils do not require a planning permit for certain projects. Please contact your local council for advice.

    Building and plumbing approval will also likely be required, even if you don’t need a planning permit. You will be required to submit a copy of all permits required by your local council to receive your grant payments. Please consult with your local council for advice regarding your project.

      

    Q:

    How big can I make my ancillary dwelling?

    A:

    The maximum size for an ancillary dwelling is 60m2, excluding decks.

      

    Q:

    Can I build an ancillary dwelling as an owner builder?

    A:

    Yes, as long as you have an owner builder permit and a White Card.

    Refer to the Consumer, Building and Occupational Services (CBOS) website www.cbos.tas.gov.au or contact your local council.

      

    Q:

    Can I sell my ancillary dwelling separately to my residence?

    A:

    No, you can only sell your ancillary dwelling and existing house together.

      

    Q:

    Can I use my ancillary dwelling for short stay accommodation?

    A:

    No, it is a condition of the grant program that you must make the ancillary dwelling available for long term rental for at least two years.

      

    Q:

    Can I get separate metering for my ancillary dwelling?

    A:

    No, ancillary dwellings require shared metering.

  • Eligibility
  • Eligibility

    You must meet all the eligibility criteria to apply for a grant.

    You may be asked to supply documentation to support your eligibility claims as part of the application process, or as part of an audit process to confirm your claims are true and correct.

    1. Applicants must be the owner(s) of the land upon which the ancillary dwelling is built.

      All interested parties (i.e. all title holders) must be named as applicants.

    2. Applicants that are natural persons must be aged over 18 years.

      The applicant does not need to be a natural person. However, an applicant that is a natural person must be aged over 18 years. The program will be open to all types of entities including, for example, companies and trusts which hold residential property.

    3. There may only be one grant issued per title.

      This will prevent a landowner from claiming the grant to build an ancillary dwelling on a property where a previous dwelling has been built with Ancillary Building Grant assistance.

    4. Applicants must not have claimed the grant previously.

      Applicants are eligible for one grant only under this program. This is to prevent a landowner claiming the grant for multiple properties. This criterion will ensure the grant is distributed to the greatest number of applicants.

    5. Applicants cannot apply for the grant in conjunction with a HomeBuilder grant and/or First Home Owner Grant (FHOG) build.

      Applicants cannot claim this grant for the same title where building is currently underway and funded by a HomeBuilder grant and/or FHOG.

      Applicants that have previously claimed HomeBuilder and/or FHOG in relation to their principal place of residence or a previous residence are eligible for this grant.

    6. The dwelling must be an ancillary dwelling.

      That is, it must be a dwelling:

      • on residential property which only has a single dwelling;
      • with a floor area of less than 60m2;
      • that is self-contained and separate to a primary dwelling (detached, semi-detached and internal); and
      • that shares access and parking, and water, sewerage, gas, electricity and telecommunications connections and meters with that primary dwelling.

    7. The ancillary dwelling must be a new project.

      To be awarded a grant the project must deliver a new ancillary dwelling. This may include a standalone structure or the conversion of all or part of an existing structure to create an ancillary dwelling.

      To qualify, the building works must neither have commenced, nor been contracted, prior to the announcement of this grant program on 16 March 2021.

    8. The value of the works to be undertaken must exceed $20 000

      Applicants must spend more than $20 000 on the ancillary dwelling project (that is, the $10 000 grant plus at least $10 000 of the applicant’s own funds) and may need to provide evidence of the total expenditure.

    9. The ancillary dwelling must be completed within two years of signing of the grant deed.

      The grant deed will require applicants to state their intention to complete building of the ancillary dwelling within two years of signing of the grant deed.

    10. Following completion of the build, the ancillary dwelling must be made available for long‑term rental and rented within three months.

      The grant deed will require applicants to state their intention to lease the ancillary dwelling as part of a long-term tenancy arrangement within the meaning of the Residential Tenancy Act 1997, for a fixed cumulative period of at least 24 months. This grant does not support building ancillary dwellings for short term holiday rentals.

    11. The tenancy agreement must be on arm’s length terms in relation to the rent amount being charged.

      There will be no requirement for the applicant to advertise through a particular mechanism or to provide the lease to a third (unrelated) party to fulfil this requirement. However, the agreement must be made on arm’s length terms having regard to current market conditions.
  • How do I apply?
  • How do I apply?

    Before you submit your application, you must:

    • ensure the applicant name(s) match the name(s) on your property title;
    • ensure you have not commenced building the ancillary dwelling before 16 March 2021; and
    • attach one of the following to your application:
      • a planning permit*
      • a ‘certificate of no permit required’
      • a letter from your council advising that you do not require a planning permit

    Applications that do not meet the above requirements will not be accepted

    *If you have applied for a planning permit and are waiting to receive it please attach a lodgement receipt to your application. You will need to upload the planning permit once you receive it.

    Download the program guidelines here

    Apply now online

    How do I apply - click to download text

  • Grant payment
  • Resources
  • FAQs
  • FAQs

    Q:

    Once I apply how long will it be before I find out if I have been successful?

    A:

    You will be notified of the outcome within 21 days of submitting an application.

      

    Q:

    Does pre-registering an interest put me first in line given it is a first come first served basis?

    A:

    No, applications are assessed based on when they are received.

    Applications open Wednesday 30 June 2021 at 3pm.

      

    Q:

    Is there a minimum amount of money that I have to spend?

    A:

    Yes. The minimum total project value to be eligible for the grant is $20 000. This means you must spend at least $10 000 in addition to the grant amount.

      

    Q:

    If I am successful in receiving a grant when will the money be paid?

    A:

    The grant is for a total of $10 000 (plus GST where applicable) which is paid in two instalments.

    The first instalment of $5 000 will be paid when you submit a statutory declaration of building commencement and any relevant council permits within 6 months of signing the grant deed.

    The second instalment of $5 000 will be paid when you submit a certificate of occupancy and a signed lease.

      

    Q:

    How long do I have to build my ancillary dwelling?

    A:

    From the date you sign the deed you have six months to demonstrate that you have commenced building and 24 months to complete the project. You should consider before applying whether you will be able to meet these timeframes.

      

    Q:

    What are the lease requirements?

    A:

    Once you’ve completed building the ancillary dwelling, you must lease it to tenants at a market rate for at least two years in total. This does not require a single lease for 24 months – you could, for example, have two consecutive 12 month leases.

    Within three months of completing the ancillary dwelling you must provide the Department with a signed lease agreement.

      

    Q:

    What happens if I can’t meet one of the requirements in the grant deed (such as meeting the completion timeframe or providing a signed lease)?

    A:

    By signing the grant deed you are agreeing to meet the requirements of the grant program. Failure to meet these requirements will result in you having to pay back money you have received. You should consider before applying whether you will be able to meet the requirements of the program.

    If it looks like you will not be able to meet one of the requirements you are encouraged to contact the Department as early as possible to discuss your options.

      

    Q:

    What approvals do I need?

    A:

    Depending on the location of your property you may need a planning permit. Some councils do not require a planning permit for certain projects. Please contact your local council for advice.

    Building and plumbing approval will also likely be required, even if you don’t need a planning permit. You will be required to submit a copy of all permits required by your local council to receive your grant payments. Please consult with your local council for advice regarding your project.

      

    Q:

    How big can I make my ancillary dwelling?

    A:

    The maximum size for an ancillary dwelling is 60m2, excluding decks.

      

    Q:

    Can I build an ancillary dwelling as an owner builder?

    A:

    Yes, as long as you have an owner builder permit and a White Card.

    Refer to the Consumer, Building and Occupational Services (CBOS) website www.cbos.tas.gov.au or contact your local council.

      

    Q:

    Can I sell my ancillary dwelling separately to my residence?

    A:

    No, you can only sell your ancillary dwelling and existing house together.

      

    Q:

    Can I use my ancillary dwelling for short stay accommodation?

    A:

    No, it is a condition of the grant program that you must make the ancillary dwelling available for long term rental for at least two years.

      

    Q:

    Can I get separate metering for my ancillary dwelling?

    A:

    No, ancillary dwellings require shared metering.

    Eligibility

    Eligibility

    You must meet all the eligibility criteria to apply for a grant.

    You may be asked to supply documentation to support your eligibility claims as part of the application process, or as part of an audit process to confirm your claims are true and correct.

    1. Applicants must be the owner(s) of the land upon which the ancillary dwelling is built.

      All interested parties (i.e. all title holders) must be named as applicants.

    2. Applicants that are natural persons must be aged over 18 years.

      The applicant does not need to be a natural person. However, an applicant that is a natural person must be aged over 18 years. The program will be open to all types of entities including, for example, companies and trusts which hold residential property.

    3. There may only be one grant issued per title.

      This will prevent a landowner from claiming the grant to build an ancillary dwelling on a property where a previous dwelling has been built with Ancillary Building Grant assistance.

    4. Applicants must not have claimed the grant previously.

      Applicants are eligible for one grant only under this program. This is to prevent a landowner claiming the grant for multiple properties. This criterion will ensure the grant is distributed to the greatest number of applicants.

    5. Applicants cannot apply for the grant in conjunction with a HomeBuilder grant and/or First Home Owner Grant (FHOG) build.

      Applicants cannot claim this grant for the same title where building is currently underway and funded by a HomeBuilder grant and/or FHOG.

      Applicants that have previously claimed HomeBuilder and/or FHOG in relation to their principal place of residence or a previous residence are eligible for this grant.

    6. The dwelling must be an ancillary dwelling.

      That is, it must be a dwelling:

      • on residential property which only has a single dwelling;
      • with a floor area of less than 60m2;
      • that is self-contained and separate to a primary dwelling (detached, semi-detached and internal); and
      • that shares access and parking, and water, sewerage, gas, electricity and telecommunications connections and meters with that primary dwelling.

    7. The ancillary dwelling must be a new project.

      To be awarded a grant the project must deliver a new ancillary dwelling. This may include a standalone structure or the conversion of all or part of an existing structure to create an ancillary dwelling.

      To qualify, the building works must neither have commenced, nor been contracted, prior to the announcement of this grant program on 16 March 2021.

    8. The value of the works to be undertaken must exceed $20 000

      Applicants must spend more than $20 000 on the ancillary dwelling project (that is, the $10 000 grant plus at least $10 000 of the applicant’s own funds) and may need to provide evidence of the total expenditure.

    9. The ancillary dwelling must be completed within two years of signing of the grant deed.

      The grant deed will require applicants to state their intention to complete building of the ancillary dwelling within two years of signing of the grant deed.

    10. Following completion of the build, the ancillary dwelling must be made available for long‑term rental and rented within three months.

      The grant deed will require applicants to state their intention to lease the ancillary dwelling as part of a long-term tenancy arrangement within the meaning of the Residential Tenancy Act 1997, for a fixed cumulative period of at least 24 months. This grant does not support building ancillary dwellings for short term holiday rentals.

    11. The tenancy agreement must be on arm’s length terms in relation to the rent amount being charged.

      There will be no requirement for the applicant to advertise through a particular mechanism or to provide the lease to a third (unrelated) party to fulfil this requirement. However, the agreement must be made on arm’s length terms having regard to current market conditions.

    How do I apply?

    How do I apply?

    Before you submit your application, you must:

    • ensure the applicant name(s) match the name(s) on your property title;
    • ensure you have not commenced building the ancillary dwelling before 16 March 2021; and
    • attach one of the following to your application:
      • a planning permit*
      • a ‘certificate of no permit required’
      • a letter from your council advising that you do not require a planning permit

    Applications that do not meet the above requirements will not be accepted

    *If you have applied for a planning permit and are waiting to receive it please attach a lodgement receipt to your application. You will need to upload the planning permit once you receive it.

    Download the program guidelines here

    Apply now online

    How do I apply - click to download text

    Grant payment

    FAQs

    FAQs

    Q:

    Once I apply how long will it be before I find out if I have been successful?

    A:

    You will be notified of the outcome within 21 days of submitting an application.

      

    Q:

    Does pre-registering an interest put me first in line given it is a first come first served basis?

    A:

    No, applications are assessed based on when they are received.

    Applications open Wednesday 30 June 2021 at 3pm.

      

    Q:

    Is there a minimum amount of money that I have to spend?

    A:

    Yes. The minimum total project value to be eligible for the grant is $20 000. This means you must spend at least $10 000 in addition to the grant amount.

      

    Q:

    If I am successful in receiving a grant when will the money be paid?

    A:

    The grant is for a total of $10 000 (plus GST where applicable) which is paid in two instalments.

    The first instalment of $5 000 will be paid when you submit a statutory declaration of building commencement and any relevant council permits within 6 months of signing the grant deed.

    The second instalment of $5 000 will be paid when you submit a certificate of occupancy and a signed lease.

      

    Q:

    How long do I have to build my ancillary dwelling?

    A:

    From the date you sign the deed you have six months to demonstrate that you have commenced building and 24 months to complete the project. You should consider before applying whether you will be able to meet these timeframes.

      

    Q:

    What are the lease requirements?

    A:

    Once you’ve completed building the ancillary dwelling, you must lease it to tenants at a market rate for at least two years in total. This does not require a single lease for 24 months – you could, for example, have two consecutive 12 month leases.

    Within three months of completing the ancillary dwelling you must provide the Department with a signed lease agreement.

      

    Q:

    What happens if I can’t meet one of the requirements in the grant deed (such as meeting the completion timeframe or providing a signed lease)?

    A:

    By signing the grant deed you are agreeing to meet the requirements of the grant program. Failure to meet these requirements will result in you having to pay back money you have received. You should consider before applying whether you will be able to meet the requirements of the program.

    If it looks like you will not be able to meet one of the requirements you are encouraged to contact the Department as early as possible to discuss your options.

      

    Q:

    What approvals do I need?

    A:

    Depending on the location of your property you may need a planning permit. Some councils do not require a planning permit for certain projects. Please contact your local council for advice.

    Building and plumbing approval will also likely be required, even if you don’t need a planning permit. You will be required to submit a copy of all permits required by your local council to receive your grant payments. Please consult with your local council for advice regarding your project.

      

    Q:

    How big can I make my ancillary dwelling?

    A:

    The maximum size for an ancillary dwelling is 60m2, excluding decks.

      

    Q:

    Can I build an ancillary dwelling as an owner builder?

    A:

    Yes, as long as you have an owner builder permit and a White Card.

    Refer to the Consumer, Building and Occupational Services (CBOS) website www.cbos.tas.gov.au or contact your local council.

      

    Q:

    Can I sell my ancillary dwelling separately to my residence?

    A:

    No, you can only sell your ancillary dwelling and existing house together.

      

    Q:

    Can I use my ancillary dwelling for short stay accommodation?

    A:

    No, it is a condition of the grant program that you must make the ancillary dwelling available for long term rental for at least two years.

      

    Q:

    Can I get separate metering for my ancillary dwelling?

    A:

    No, ancillary dwellings require shared metering.

    Resources