Today I spoke with a QLD Treasury official trying to figure out if our build is considered a knockdown rebuild. We meet all the requirements, perfectly. I read the FAQ for Homebuilder over and over, saw no issues that would preclude us from receiving it. I was quiet shocked to learn that because we demolished our principle place of residence separately from our building contract, we don't qualify. Apparently the knockdown rebuild is only covered if your builder oversees the demolition. The bigger companies offer this service. They'll manage the project which would have made us eligible, if we went with a big company. However I wanted to support local business and decided to hire a local demo crew and a local builder. Unfortunately, this choice has left us ineligible for the Homebuilder grant. Even though the demolition company was suggested to me by my contracted builder.
So if you're considering a knockdown rebuild with Homebuilder. Be 100% sure your building contract covers the demolition too. Don't hire a 3rd party to do the demolition.