On 1 July 2017, the NSW Government introduced a number of initiatives to help buyers purchase their first home.
What help is available?
There are various types of assistance available:
- First Home Owners Grant (FHOG) worth up to $10,000 on the purchase of new homes;
- Waiving of stamp duty if your first home costs less than $650,000;
- Savings available on stamp duty payable on homes that cost $650,001-$800,000; and
- Savings available on stamp duty payable on vacant land up to $350,000 (no stamp duty payable), with savings on stamp duty on vacant land from $350,001-$450,000.
First Home Owners Grant (New Homes)
- First home buyers purchasing a new home worth up to $600,000 are entitled to a $10,000 grant.
- First home buyers building a new home are entitled to a $10,000 grant on homes worth up to $750,000.
What is a new home?
A new home is a home that has not been previously occupied or sold as a place of residence. This includes a home that has been substantially renovated and a home built to replace demolished premises. It must be the first sale of that home. A home that has been previously occupied, by the builder, tenant or any other occupant is not considered to be a new home.
Do I qualify?
To qualify for the grant you must fulfil all the following criteria:
- the home must be a brand new home;
- the contract date must be on or after 1 January 2016;
- the value of the property must not exceed $750,000;
- you must be over the age of 18 years;
- 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 need to live in the home for a continuous period of at least 6 months;
- you have not received a first home owners grant in any State or Territory before; and
- 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.
How do I apply?
You can apply for the grant through your financial institution or directly through Revenue NSW, by submitting a First Home Owner Grant (New Homes) Application form (OFH001).
If applying direct with Revenue NSW, the house must be complete and you must be registered on title.
Applications lodged with financial institutions will have the grant available for settlement or for the first draw down on contracts to build. Revenue NSW has a list of approved agents on their Approved agents page.
Applications must be lodged within 12 months of completion or settlement of your new home. Your solicitor/conveyancer can help you lodge your application and documents with Revenue NSW.
First Home Buyers Assistance Scheme
The First Home Buyers Assistance Scheme, provides exemptions or concessions on stamp duty for eligible NSW first home buyers. This also includes vacant land where you intend to build your first home.
This Scheme provides exemptions on stamp duty on new and existing homes valued up to $650,000 and concessions on duty for new and existing homes valued between $650,000 and $800,000.
Buyers purchasing a vacant block of residential land to build their home will not pay stamp 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.
Do I qualify?
To qualify under the Scheme, you must fulfil all the following criteria:
- the contract and transfer must be for the purchase of the whole property;
- all purchasers must be eligible;
- to be eligible, you must be a natural person (ie. 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 (solely or with someone else) residential property in Australia other than property owned solely as trustee or executor.
- previously received an exemption or concession under First Home – New Home.
- at least one eligible purchaser must occupy the home as their principal place of residence for a continuous period of 6 months, commencing within the first 12 months of completion of the agreement.
You can calculate the concession on duty that you will receive by using the online calculator on the Revenue NSW website: First Home Buyers Assistance calculator
How do I apply?
To apply under the Scheme, you must complete the First Home Buyers Assistance Scheme form and provide it to your solicitor/conveyancer.
The application must be accompanied with all necessary supporting documentation. You must have already exchanged contracts to purchase your first home or vacant land. All purchasers must also complete a Purchaser/Transferee Declaration