Each state in Australia is offering several benefits for prospective property buyers. The benefits explored in this article are specific to NSW (though other states may have similar offerings) and refer a lot to the NSW Revenue department criteria as they are responsible for administering these benefits and exemptions. Buyers need to approach various service providers for assistance when applying for the presently available exemptions.
Some of the benefits and exemptions are only available to first home buyers.
First Home Buyers Assistance scheme
This scheme gives people buying their first home a concession on their stamp duty (now known as transfer duty). This benefit applies to new or existing homes and vacant land with the only difference being the value threshold that applies. Due to the COVID-19 pandemic the world is going through, the Australian government has provided relief for purchasers of new properties and vacant land. Contracts signed after 1 August 2020 will be able to enjoy an enhanced benefit until 31 July 2021.
For newly built houses:
- No stamp duty payable on newly built houses valued up to $800,000.
- Concessional stamp duty applicable on houses costing between $801,000 until $1,000,000
- Full stamp duty payable on houses worth upwards of $1,000,000
For vacant land:
- No stamp duty payable on vacant land valued up to $400,000.
- Concessional stamp duty applicable on vacant land costing between $401,000 until $500,000
- Full stamp duty payable on vacant land worth upwards of $500,000
Existing properties have not been provided with any special relief, with stamp duty being fully waived for a first home buyer of an existing property worth $650,000 or less. Concessional stamp duty is payable if an existing property is worth between $650,000 until $800,000 with full stamp duty payable on any amount greater than $800,000.
Are you eligible:
To be eligible, you must:
- Be an individual
- Be over the age of 18
- You, and your spouse/partner, must never have owned or co-owned residential property in Australia
- You, and your spouse/partner, must never have received an exemption under this scheme
- Be either a permanent resident or Australian citizen
If you apply and successfully receive a benefit under this scheme, you must move into the home within 12 months after buying the property and live there for a continuous period of 6 months.
Your conveyancer/solicitor will help you lodge this application.
First Home Owners Grant
First home buyers may also be eligible for a $10,000 grant provided the purchase meets either of the following criteria:
- A purchase with a single contract price of $600,000 or less for a newly constructed or substantially renovated home
- A purchase with two contracts with a combined value of $750,000 or less where you may have purchased a block of land to build your home
Are you eligible?
To be eligible, you must:
- You must be an individual over the age of 18
- At least one of the purchasers must be an Australian Citizen or permanent resident
- Your purchase is made after 1 January 2016
- You must move into the property within 12 months of buying or of building being completed (for vacant land) and live there for six continuous months
- You or your spouse must not have owned or co-owned a home in Australia previously
- You or your spouse must not have previously claimed this grant
Your banker/broker will help you with lodging this application.
HomeBuilder Grant
This grant applies to all home buyers and is intended to stimulate the construction sector by providing a grant to those building a new home or substantially renovating an existing one. This grant of $15,000 has recently been extended for those who enter into a building contract from 1 January 2021 until 31 March 2021.
This grant is intended to be in addition to the First Home Buyers Assistance scheme & the First Home Owners Grant.
To be eligible:
- a natural person (not a company or trust)
- aged 18 years or older at the date of the contract
- an Australian citizen.at the date of application.
- For contracts to build, you must be registered on title as owner of the land by no later than the laying of foundations and the first progress payment is made to the builder.
- For substantial renovations, you must be registered on the title as owner of the property when you enter into the contract for renovation works.
- For off the plan/new homes, you must be registered on the title as the owner of the property when the building is completed, and you are entitled to take possession of the home.
This is a brief summary of the grants available, and we are more than happy to discuss them with you even though we may not be the ones helping you apply for them if you have some clarifications. All the above grants and benefits are available on the NSW Revenue website or ask your friendly Uneek person for further information.