The way Housing Australia funds building work affects the dollar value for building work which triggers the application of the Scheme. 

If Housing Australia provides funding for building work through a funding agreement or grant to a funding recipient who either undertakes the building work themselves, engages a head contractor builder to carry out that building work, or engages a project manager or developer who then engages a builder(s) to undertake the building work, this will generally be considered an indirect funding arrangement. The Scheme applies to projects that are indirectly funded where: 

  • a contract for building work that forms part of the project has a value of at least $4 million (GST inclusive) AND EITHER: 

    - the value of Housing Australia's contribution to the funding of the project is at least $6 million (GST inclusive) AND represents at least 50 percent of the total funding; OR 
     - the value of Housing Australia's contribution to the funding of the project is at least $10 million (including GST), irrespective of the proportion of Housing Australia funding contribution to the total value of the project. 

For further information refer to the Fact Sheet – Applying the Scheme to indirectly funded building work.

The Scheme applies to both direct and indirect funding of building work. 

EXAMPLE – Indirect funding arrangement where the Scheme does not apply

  • Housing Australia provides $7 million in funding to a community housing provider to part-fund a social housing project. The community housing provided engages Terra Constructions to undertake the building work which has a contract value of $11 million.  The total value of the funding required for the project is $18 million.  
  • Terra Constructions does not require accreditation to undertake this building work. Even though the building contract value exceeds $4 million and Housing Australia’s $7 million funding contribution is more than the $6 million threshold, its contribution is not 50% or more of the total funding. 

EXAMPLE – Indirect funding arrangement where the Scheme does apply 

  • Housing Australia provides $18 million in funding to a State Government owned entity to part fund the building work on a high rise social housing development valued at $80 million. The State Government owned entity engages High Rise Homes as head contractor builder to construct the development and the contract value exceeds $4 million.  
  • The project is captured under the Scheme as Housing Australia’s contribution to the project is more than $10 million. Because the contribution is more than $10 million, the total value of the project is not relevant. 
  • High Rise Homes is required to be accredited under the Scheme to undertake the building work.

Other exemptions

See the links below for information on the other exemptions:

EXEMPTION 2 – Single dwelling houses

EXEMPTION 3 – Joint venture arrangements

EXEMPTION 4 – No Scheme coverage where funding does not assist building work to proceed

Exemptions automatically apply in any relevant 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.