First Home Buyer Assistance Scheme
Buying your first home can be confusing and stressful, understanding these grants is important to understand where you are at financially. The First Home Buyer Assistance Scheme is the more common scheme especially, in the greater Sydney Metropolitan area and New South Wales. Both these scheme operate to allow a potential purchaser a full or partial exemption on transfer duty (stamp duty) when buying your first home provided you fit the criteria including the strict thresholds set by the NSW Government.
The First Home Assistance Scheme provides for a partial or full exemption of Transfer duty/Stamp Duty when purchasing a property. The benefit ranges depenant on the below thresholds:
| Property value | Exemption | |
|---|---|---|
| New and existing homes | Value is equal to or less than
$800,000 |
Exempt
You can apply for a full exemption from transfer duty. |
| Value is above
$800,000 and less than $1 Million |
Concessional rate
You can apply for a concessional transfer duty rate. |
|
| Vacant land | Value is equal to or less than
$350,000 |
Exempt
You can apply for a full exemption from transfer duty. |
| Value is above
$350,000 and less than $450,000 |
Concessional rate
You can apply for a concessional transfer duty rate. |
Requirements
1. Australian citizen or permanent resident of Australia;
2. At least 18 years old, although this can be waived on application;
3. Buying your first home;
This can be an established or new home and also includes land.
If buying with another person generally, both must be first home buyers, but there are exemptions so seek advice.
4. The transfer must be for the whole of the property i.e. can’t be for a share or percentage of a property;
5. Value is no more than the current thresholds;
6. You must live in the property within 12 months and live there for at least six continuous months.
Is there a penalty if I don’t live in the property?
You or one of the other eligible first home buyers must:
- move into the home within 12 months after settlement, and
- live in the property as your principal place of residence for at least 12 continuous months.
There are substantial penalties for providing false and misleading information when applying to Revenue NSW these can include criminal charges.
If your circumstances change and you will not be able meet the residence requirement you will no longer be eligible for the scheme.
You must let Revenue NSW know straight away to arrange for the correct duty to be paid. Otherwise, you will face the possibility of interest and penalties.
How do I apply
Through your conveyancer and/or solicitor when your purchasing the home.
First Home Buyer Assistance Application Form
First Home Buyer Grant
The current scheme offers first home buyers a $10,000 grant towards their new home. The scheme only applies to new builds or extensively renovated homes.
This grant is in addition to the First home Buyers assistance scheme providing exemptions and concessions on stamp/transfer duties.
Availability of first home buyer grant
- Contract to buy a new home
- Building contract by the owner of the land
- Owner of the land building their own home
- Purchase price of your new home must be no more than $600,000 ($750,000 if purchasing land as well).
Eligibility
- Australian citizen or permanent resident of Australia
- At least 18 years old
- This must be a new home:- If buying with another person generally, both must be first home buyers, but there are exemptions so seek advice.
- Purchase price of your new home must be no more than $600,000 ($750,000 if purchasing land as well or owner/builder)
- You must live in the property within 12 months and live there for at least six continuous months.
What is considered a new home?
It is the first time that the home has been sold and the house has never been lived in before you move in, this includes by the builder or a tenant.
In the case of a recently renovated home most or all of the house was removed and/or replaced, and it is the first time that the home has been sold after the renovations. It also can not have been lived in, this includes by the builder or a tenant.
How do I apply
You apply for the first home owner grant through your bank or financial institution when arranging finance.
Is there a penalty if I don’t live in the property?
Yes, you must reside in the property was at least six continuous months within the first 12 months of purchasing the property.
There are substantial penalties for providing false and misleading information when applying to Revenue NSW these can include criminal charges.
Application form and lodgement for New Homes First Home Owner (grant) New Homes Scheme.
What is stamp duty?
Stamp or transfer duty is a tax in NSW when you buy a:
- Purchase property
- Investment property
- Vacant land or a farming property
- Commercial or industrial properties
- A business which includes land
When does transfer duty need to be paid?
You must pay transfer duty within three months of signing a contract for sale or transfer, except in the case of off-the-plan purchases.
If you buy off-the-plan and you intend to live in the property you may be able to defer this tax for up to 12 months.
You will need to seek legal advice to ensure you understand your obligations in regards to transfer duties.
Calculate potential stamp duty (Revenue NSW Website Site)