First Home Buyers: Grants and Concessions NSW
In this blog, we'll look at what concession are available for First Home Buyers in NSW
First Home Owner Grant (FHOG): NSW
In NSW, the First Home Owner Grant was established to assist eligible first home owners to purchase a new home or build their home by offering a grant.
The grant amount is determined by the date of transaction. This is the date of the contract to purchase a new home or contract to build a home.
From 1 July 2017, the First Home Owner Grant Cap for new home purchases is $600,000; for a property where you enter into a contract to build, or are an owner builder the total value cannot exceed $750,000.
For eligible transactions made on or after 1 January 2016, the grant amount is $10,000.
For eligible transactions made between 1 October 2012 and 31 December 2015, the grant amount is $15,000.
To be eligible for the FHOG all the following requirements have to be met:
the contract date must be on or after 1 January 2016
the home is a brand new home
you are over 18
you or your spouse (including de facto spouse) have 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 $750,000
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.
Stamp Duty Concession: NSW
If you are buying an established home as your first home and you meet the FHOG eligibility criteria, you may be entitled to a first-home buyer duty exemption (for homes valued at $650,000 or less) or concession (for homes valued at $650,001 up to $800,000). Vacant land on which you intend to build your first home is included in the scheme.
Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $350,000, and will receive concessions on duty for vacant land valued between $350,000 and $450,000.
To qualify for First Home Buyers Assistance, you must meet the criteria listed below:
The contract and the transfer must be for the purchase of the whole of the property.
All purchasers must be ‘eligible purchasers’.
An ‘eligible purchaser’ is a natural person (i.e. not a company or trust) at least 18 years of age who has not, and whose spouse/de facto has not:
at any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trustee or executo
previously received an exemption or concession under First Home—New Home.
At least 1 eligible purchaser must occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of completion of the agreement. (Where an eligible purchaser was a member of the permanent forces of the Australian Defence Force and all purchasers were enrolled on the NSW electoral roll, as at the transaction date, then all purchasers are exempt from the residence requirement).
If not all purchasers are ‘eligible purchasers’, you may still qualify for a concession under the shared equity arrangements in First Home Buyers Assistance scheme, which allows eligible purchasers to buy property with other parties and still receives a concession. To qualify, the eligible purchasers must buy at least 50 per cent of the property. The value limits and other eligibility criteria of First Home Buyers Assistance apply. Transfer duty is calculated with reference to the proportion of the property purchased by other parties. However, this interest is disregarded if it is not more than 5%. If the first home buyer’s spouse has previously owned a home or received a benefit under First Home Buyers Assistance, the first home buyer will not be entitled to the shared equity arrangements concession under First Home Buyers Assistance, regardless of whether or not the spouse is also a purchaser.
The first home owners grant will vary depending on which state you're in, if you are buying a new home, established home, or vacant land and building and the purchase price of the property that you are buying.
For this reason, we strongly recommend that you visit the state government’s website or call their first home buyer hotline to confirm the benefits you will receive. You can contact your state government below:
NSW Office Of State Revenue Ph: 1300 130 624.
QLD Office Of State Revenue Ph: 1300 300 734.
State Revenue Office Victoria Ph: 13 21 61.
ACT Revenue Office Ph: (02) 6207 0028.
WA Department Of Finance Ph: 1300 363 211.
Revenue SA Ph: 1800 637 778
NT Revenue Office Ph: 1300 305 353.
TAS Department Of Treasury & Finance Ph: (03) 6233 2927