McCarthy & McCarthy v Commissioner of State Revenue

The applicants, Carly Maree McCarthy and Matthew McCarthy, sought a review of the Commissioner of State Revenue's decision to refuse their application for the HomeBuilder Grant. The Commissioner had found that the applicants' renovation contract did not qualify as a "substantial renovation contract" under the First Home Owner Grant and Other Home Owner Grants Act 2000. The applicants contested this determination, arguing that the contract as a whole constituted a substantial renovation. They appealed to the Queensland Civil and Administrative Tribunal for a review.

The central legal issue was whether the applicants' renovation contract could be considered in its entirety as a "substantial renovation contract" or if individual parts of the contract that did not meet the criteria should be excluded. The applicants contended that the contract should be evaluated as a whole, as the Administrative Direction did not suggest a piecemeal approach. The Commissioner argued that only the value of alterations to the house should be included in determining eligibility and that external works should not be considered. The court had to decide whether the contract should be considered in its entirety or if parts of it could be excluded.

The Tribunal found that the contract should be considered as a whole. The Administrative Direction did not provide for the exclusion of particular items under the contract that were not substantial alterations to the existing dwelling. The definition of "consideration" for a substantial renovation contract included the total consideration payable under the contract, without allowing for the excision of non-qualifying parts. The Tribunal concluded that the contract substantially altered the existing dwelling and met the criteria for a "substantial renovation contract."

The Tribunal ordered that Matthew McCarthy be joined as a party to the proceedings. It determined that the contract signed by the applicants on 8 July 2020 qualified as a substantial renovation contract, thus reversing the Commissioner's decision to deny the grant.