Does the New South Wales transfer duty (formerly known as stamp duty) concession or exemption apply to you?
Have you found the perfect property to call home or the picture perfect land to build your new home on? Is this your first home or land purchase? Are you looking for ways to save?
If your answer is yes, then you may be eligible for the transfer duty concession or exemption, which would save you a significant amount of money in the purchase of your property.
How the Scheme Might Work for You
The First Home Buyers Assistance scheme commenced from 1 July 2017 and is a government initiative providing concession and exemptions on transfer duty for eligible first home buyers in New South Wales.
The purchase of new and existing homes
The First Home Buyers Assistance scheme will provide eligible purchasers with an exemption from transfer duty on new and existing homes that are valued up to $650,000. If your property was therefore worth $640,000, this would save you a whopping amount of $24,310
The concession on transfer duty will apply to new and existing homes valued between $650,000 and $800,000 and therefore If your property was worth $710,000, you would save the amount of $14,850.
The purchase of a vacant block of residential land
Eligible purchasers, who have purchased a vacant block of residential land to build their future homes on, will pay no duty on the land if it is valued up to $350,000.
A concession on duty will apply for vacant residential land valued between $350,000.00 and $450,000.00.
Are You Eligible for the First Home Buyers Assistance Scheme?
To qualify for the First Home Buyers Assistance scheme, you must meet the following conditions:
- 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, and therefore not a company or trust.
- The eligible purchaser(s) must be 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 a trustee or executor
- Previously received an exemption or concession under the old scheme (First Home—New Home scheme).
- 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 contract. If this doesn’t happen you may be liable to pay back the money.
Note: 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.
