Stamp Duty Concessions
As an incentive for first home buyers most states and territories in Australia offer stamp duty concessions to first home purchasers. These concessions are summarised below.
First Home – New Home Scheme
The First Home—New Home scheme provides exemptions or concessions on transfer duty for people who are buying their first home in NSW. This includes buying vacant land on which they intend to build their first home.The First Home—New Home scheme provides eligible purchasers with full stamp duty exemptions on transfer duty on new homes valued up to $550,000 from 1st July 2012 (or $500,000 for properties purchased prior to 1st July 2012). Partial concessions on transfer duty are available for new homes valued between $550,000 and $650,000 from 1 July 2012. Prior to 1st July 2012 the partial concession was available for new homes valued between $500,000 and $600,000.
As of 1st July 2012 eligible purchasers buying a vacant block of residential land to build their home on will pay no stamp duty on vacant land valued up to $350,000 ($300,000 prior to 1 July 2012) and will receive a concession on duty for vacant land valued between $350,000 and $450,000.
NSW New Home Grant Scheme
Commencing 1 July 2012, a $5000 grant will be available to buyers of new homes, whether off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
A purchaser under the scheme can be any entity, including a natural person, a company or a trustee of a trust and is available to investors as well as owner occupiers. The payment of the grant will be administered by way of applying the amount of the new home grant as a credit against liability for duty on the agreement for sale or transfer. However, if the total amount of duty is paid, or there is a balance of grant owing, a payment will be issued by cheque upon completion of the purchase (i.e. the registration of the change of title).
First Home Owners Grant Changes
From 1 October 2012, the $7 000 First Home Owner Grant will be replaced by the $15 000 First Home Owner Grant (New Homes) Scheme.
First home owners who purchase or build a new home where the eligible transaction commencement date (contract date) is on or after 1 October 2012 will be eligible for the $15 000 grant. The grant will reduce to $10,000 on 1 January 2014 for eligible transactions which have a commencement date (contract date) on or after 1 January 2014.
The $7 000 first home owner grant for established properties ends on 30 September 2012 and will not be available where the eligible transaction commencement date (contract date) is on or after 1 October 2012.
For more detailed information on all of these benefits please visitwww.osr.nsw.gov.au.
First Home Bonus
This scheme was abolished on 30 June 2012.
This scheme was abolished on 30 June 2012.
Transfer Duty Concessions – First Home Buyers
For settlement dates on or after 1 July 2011, land transfer duty rates will be reduced for eligible first home buyers purchasing their principal place of residence (PPR) valued up to $600,000. Land Transfer Duty will be reduced by 20 per cent on 1 July 2011, followed by additional 10 per cent cuts on 1 January 2013, 1 January 2014 and 1 September 2014, totalling a cumulative 50 per cent reduction for settlement dates on or after 1 September 2014.
Transfer Duty Concessions – Pensioners
Eligible pensioners who hold a relevant concession card at the date of settlement may be entitled to an exemption or concession from duty depending on the value of their interest in the house and land.
Full exemptions from transfer duty is available for homes valued at up to $330,000 and a partial concession is available for homes valued at more than $330,000 but not more than $750,000. Contact the Victorian State Revenue Office for more details.
In Victoria there are other concessions available such as “First Home Owner with Family” and “Principle Place of Residence”. For full details on the various concessions available in Victoria please visit www.sro.vic.gov.au
First Home Buyer Stamp Duty Concessions
Eligible first home buyers will be exempt from transfer stamp duty for purchases of established homes up to $500,000. A concession will continue to apply on a sliding scale for properties over $500,000 (but not more than $599,999). In regards to vacant land a full exemption from stamp duty is available to first home buyers purchasing vacant land for up to $250,000. A concession will continue to apply on a sliding scale for land over $250,000 (but not more than $399,999).
The transfer duty home concession was reinstated on 1 July 2012. This provides a concessional rate of stamp duty for eligible applicants purchasing a principle place of residence. Visit www.osr.qld.gov.au for the duty rates.
Building Boost Grant
The $10,000 Building Boost Grant ran from 1 August 2011 to 30 April 2012. Unfortunately it is no longer available.
First Home Owners Grant Changes
As of 12 September 2012, the new First Home Owner Construction Grant (FHOGC) replaced the current First Home Owner Grant Scheme. The new grant is for first home buyers who are purchasing a newly constructed or off-the-plan property and will increase from $7000 to $15,000. To be eligible for the new $15,000 grant, first home buyers must sign contracts for new properties on or after Wednesday 12 September 2012. Contracts signed prior to Wednesday 12 September 2012 will be eligible for a $7000 grant.Note: First home buyers who are purchasing an existing dwelling will have until Thursday 11 October 2012 to sign their contract and be eligible for the $7000 grant. A first home buyer purchasing an established home on or after Thursday 11 October 2012 will no longer be eligible for a grant. A new home is a home that has not been previously occupied or sold as a place of residence. For complete details please visit www.osr.qld.gov.au
First Home Bonus Grant
The FHBG of up to $8,000 is available to first home buyers who enter into a contract to purchase or build new home on or after 17 September 2010, or commence construction as an owner builder on or after 17 September 2010.
The FHBG of up to $8000 is an additional payment for first home buyers who qualify to receive a First Home Owner Grant of $7,000 where the market value of the property is less than $450,000.
This bonus grant is available if you entered into a contract to purchase or build a New Home* between 17 September 2010 and 30 June 2013 (both dates inclusive), or you commenced construction as an owner builder between 17 September 2010 and 30 June 2013 (both dates inclusive)
For more details please visit http://www.revenuesa.sa.gov.au
Must be first property purchased in Australia. From 4 May 2010, first home buyers purchasing a property may receive a concession of up to $26,730, which represents the duty on the first $540,000 of the dutiable value of the property.The purchase price of the home or land must not exceed $750 000 or $385 000 respectively.Rebates are also available to non first home buyers who are purchasing a new principal place of residence.
For full details and a calculator please visit http://www.nt.gov.au/ntt/revenue/home_incentives.shtml
BuildBonus was introduced on 3 May 2011 and provides a $10 000 grant to home buyers and investors, including companies and trustees, that sign a contract to purchase or build a new home (including signing a contract for a house and land package), purchase a new unit (including off-the-plan) or commence construction of a new home as an owner builder, between 3 May 2011 and 31 December 2011 inclusive.
BuildBonus is not means tested but the value of a new unit or new home or the total construction cost of a new home (including the value of the land on which it is built) is capped at $530 000.
This bonus is available to first home buyers in addition to the $7,000 First Home Owners Grant.
See http://www.nt.gov.au/ntt/revenue/home_assist/buildbonus.shtml for more information.
Home Buyer Concession
To be eligible for these concessions applicants and their domestic partners must not hold or have held in the previous two years, an interest in any other land except where special circumstances apply. See http://www.revenue.act.gov.au for more information on these circumstances. To be eligible for these duty concessions you must also meet the income test. The combined household income must be no more than $120,000. Total income threshold of $120,000 increases by $3,330 per annum for each additional dependent child to a maximum income of $136,650. Property must be owner-occupied and you are required to live in the property for at least 6 months.
For full details please visit http://www.revenue.act.gov.au
Purchasers who are eligible for the First Home Owners Grant are eligible to receive a maximum stamp duty concession of $4,000 for the purchase of owner occupied property valued up to $350,000. The maximum concession available in relation to the purchase of vacant land is $2,400, providing the dutiable value of the vacant land does not exceed $175,000. For more information visit the Tasmanian State Revenue Office website.Please note that this duty concession does not apply to contracts entered into after 16 June 2011. The Tasmanian State Government has closed this concession.
Disclaimer: This information was correct as of 19th September 2012. Government policy is subject to frequent change so we recommend you confirm the information on this page with your states Revenue Office before acting on it. Links to the various State Revenue Sites are provided above.