Benefits for Home Buyers in NSW
By far the single biggest expense incurred by home buyers and land purchasers in NSW is the stamp duty paid to the NSW government on a purchase contract. As an example a purchaser buying a home for $500,000.00 would ordinarily pay $17,994.00 stamp duty on both the contract and transfer. There are however a number of stamp duty exemption schemes which operate to assist both first home buyers and other home buyers to purchase their homes.
In addition a number of monetary grants are available to certain classes of home buyer. As there have been a number of recent legislative changes to these schemes and grants we have summarised below the benefits currently available.
First Home Buyers
1. First Home – New Home Scheme
This scheme was introduced on 1 January 2012. It 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 purchasers with exemptions on transfer duty on new homes valued up to $550,000.00 and concessions on transfer duty for new homes valued between $550,000.00 and $650,000.00.
Eligible purchasers buying a vacant block of residential land to build their new home on will pay no duty on vacant land valued up to $350,000.00 and will receive a concession on duty for vacant land valued between $350,000.00 and $450,000.00.
2. First Home Owner Grant (New Homes) Scheme
Subject to satisfying eligibility requirements first home owners buying new homes or building their first home are also entitled to a $10,000.00 grant to assist them provided that the total purchase price is not more than $750,000.00. For those building their first home the cap is applied against the total of the land purchase price and the building contract price.
Applicants are required to be natural persons, one of whom must be a permanent resident or Australian Citizen. Applicants are also required to live in the property for a continuous period of at least 6 months.
The grant will reduce to $10,000.00 on 1 January, 2016
New Home Grant Scheme
- This scheme was introduced on 1 July 2012 to stimulate the construction of new homes. It provides a grant of $5,000.00 towards the purchase of new homes, homes off the plan and vacant land on which a home will be built.
- To be eligible for the grant the value of the new home must not exceed $650,000.00 and the value of the land on which a new home is to be built must not exceed $450,000.00. Additionally, in respect to vacant land purchasers, construction of the new home must commence within 26 weeks of the completion of the land purchase.
- The grant is available to investors as well as owner occupiers and the applicant can be a natural person, a company or the trustee of a trust. The grant is paid by way of a $5,000.00 reduction in the stamp duty amount ordinarily payable on the purchase of the new home or land.
Please feel free to contact either John Bateman or Scott Johnson at Bateman Battersby on (02) 4731 5899 or email to email@example.com if you require any further information or assistance in relation to any of the exemption and concession schemes currently available in NSW.
Download PDF Version:
Stamp Duty Benefits for Home Buyers in NSW