Property Law | Buying a Property or Investment

Criteria for Eligibility for the Duty Concession or Exemptions

If you are searching for your first home or investment property, let the Executive Legal team be your dedicated guide.

You are going to make a few major decisions in your life that you can consider as turning points, and buying your first home is one of them. It is one of the most important purchase of your life. Buying your first home is not a decision that you can take lightly without detailed financial planning and thorough market research. Executive Legal assures you that your first experience of purchasing will go as smooth and hassle-free as it possibly can.

If you are looking to save, you can take a look at the First Home-New Home grant scheme.

What is the First Home-New Home scheme?

The New South Wales Office of State Revenue has a First Home – New Home grant scheme that provides eligible purchasers with exemptions from transfer duty on new homes valued up to $550,000 and concessions for new homes valued between $550,000 and $650,000. Qualified purchasers who buy a vacant block of land to build their home on will pay no duty on vacant land valued up to $350,000 and will receive concessions for vacant land valued between $350,000 and $450,000.

here is a set of criteria for eligibility for the duty concession or exemptions entail that:

  • At least one buyer must be an Australian citizen or permanent resident

  • The agreement must be for the purchase of the whole property

  • You must be a natural person (not a company or trust)

  • You must be over 18

  • You or your partner have not previously owned property in any form in any State or Territory of Australia

  • At least one purchaser must occupy the home within 12 months and needs to live in the home for a continuous period of at least 6 months.

The Office of State Revenue offers a grant of $15,000 to assist first homeowners to purchase a new home or build their home.

The scheme only applied to new homes:

  • A home that has not been previously occupied, including occupation by the builder, a tenant or other occupant

  • A home that has not been previously sold as a residence. Where the home is being purchased, it must be the first sale of that home

  • A home that has been substantially renovated and a home build to replace demolished premises

 

The scheme is scheduled to be reduced to $10,000 on 1 January 2016. To be eligible for the $15,000 grant before 1 January 2016, the following criteria applies:

  • The contract date must be on or after 1 October 2012

  • The home is a brand new home

  • You are over 18

  • You or your spouse (including de facto spouse) has never held a relevant interest in any residential property in Australia prior to 1 July 2000.

  • However, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months.

  • The value of the property must not exceed the First Home Owner Grant Cap of $650,000 for contracts dated between 1 October 2012 to 30 June 2014

  • The value of the property must not exceed the First Home Owner Grant Cap of $750,000 for contracts dated on or after 1 July 2014

  • You have not received a first home owners grant in any State or Territory, unless subsequently repaid

  • You need to live in the home for a continuous period of at least 6 months

  • At least one applicant is a permanent resident or Australian citizen

  • Each applicant must be a natural person and not a company or trust.

You can visit the Office of State Revenue for more information about the scheme.

There is a need for your application to be lodged for you to be given the grant from the scheme, Executive Legal Lawyers can assist you with this process so you can submit everything in order at the Office of State Revenue.

 

 

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