EXEMPTION 4 – No Scheme coverage where the ultimate outcome of the funding does NOT involve building work

The Scheme only applies to head contractor builders engaged to carry out building work funded by the Australian Government. If your project does not involve any building work whether by you or a third party, there is no requirement that an accredited builder be used.

  • Housing Australia may contribute funding towards a project involving building work in several ways, including by funding non-building aspects of the project. Whether the Scheme applies to head contractor builders in these circumstances will generally depend on the degree of connection between the funding provided for non-building work and the building work undertaken as part of the project. 
  • Housing Australia determines this by considering the legal terms and conditions on which the funding is provided, and the broader context and circumstances in which it is provided. In most cases, the consideration of these factors and any resulting decision will be a matter of judgment, based on the specific facts and circumstances.
  • If, based on these considerations, the provision of funding for non-building work activities is too remote from the carrying out of building work, the Scheme will not apply to the head contractor on the project. For example, the Scheme will not apply in the following circumstances:
    • the Commonwealth funds a feasibility study for a project that would (if it went ahead) involve building work;
    • the study is done prior to any decision being made to carry out building work; and 
    • the purpose of the study is to determine whether the project should proceed at all.
A few different funding and financing scenarios are considered further below
  • Housing Australia may enter into an agreement to provide a construction loan with a borrower.  In this scenario, it is likely the Scheme will apply to the extent the Housing Australia loan finances the building work to be carried out. In this case, an accredited builder is most likely required unless one of the exemptions applies. 
  • Housing Australia may give a conditional commitment for to provide, and then later actually provide, an acquisition financing loan for the purposes of enabling a borrower to acquire a turnkey dwelling (or dwellings) on completion. In this scenario, the application of the Scheme will depend on whether the funding is sufficiently connected to the construction of the dwelling(s) that are to be acquired. This may be assessed on a case-by-case basis so please call the Office of the Federal Safety Commissioner (OFSC) for more information.
  • Housing Australia may provide availability payments to a funding applicant only to fund the operating cost of making dwellings available as social and affordable housing. In this scenario, the Scheme will generally not apply because the funding is unlikely to be sufficiently connected to an ultimate outcome that involves building work.  To determine this, please call the OFSC for more information.

Please contact the OFSC for more information about Scheme accreditation. Housing Australia determines whether the Scheme applies to projects receiving Housing Australia funding, and informs each funding recipient. Please contact Housing Australia for information about the application to specific projects receiving Housing Australia funding.

 Example - where the funding is NOT sufficiently connected to an ultimate outcome that involves building work

Purchase of completed dwellings 

  • Housing Australia commits to funding the spot purchase of completed dwellings after they have been constructed. 
  • As the funding is only for the purchase of completed dwellings, Housing Australia is not funding the building work nor is the funding sufficiently connected to an ultimate outcome that involves building work.
  • There is no requirement that the builder be accredited. 

Availability payments for post-construction costs

  • The funding applicant owns the land and has already commenced construction of a block of apartments. The construction phase has been financed without Housing Australia funding.
  • The applicant has applied to Housing Australia for funding in the form of availability payments only. 
  • Housing Australia commits to provide availability payments to the applicant for the purpose of funding the (post-construction) operating costs of making dwellings available for social and affordable housing. 

Other exemptions

See the links below for information on the other exemptions:

EXEMPTION 1 – Building work valued at below the Scheme funding thresholds

EXEMPTION 2 – Single dwelling houses

EXEMPTION 3 – Joint venture arrangements

Exemptions apply automatically to each listed scenario. You do not need to apply for or seek approval from the OFSC for an exemption. If you are unsure if an exemption applies to your project, please contact the OFSC at ofsc@dewr.gov.au.

Further assistance

To speak to an OFSC representative please call the OFSC Assist Line 1800 652 500, or email ofsc@dewr.gov.au.