Exemptions and Concessions on Duty

Exemptions and Concessions on Duty – NSW 2013

FIRST HOME – NEW HOME 

This government initiative in NSW provides for exemptions or concessions on duty:

1. For eligible first home buyers of a new property where the agreement (Contract) is dated on or after 1 July 2012.

The initiative provides eligible purchasers with a full exemption on duty for the purchase of a new home valued up to $550,000.00 and concessions on duty for new homes valued between $550,000.00 and $650,000.00; and

2. In relation to Contracts for vacant land where you intend to build your first home.

Eligible purchasers who buy a vacant block of residential land to build their new home on will also receive a full exemption on duty for land valued up to $350,000.00 and will receive concessions on duty for a vacant block of residential land valued between $350,000.00 and $450,000.00.

First Home—New Home exemptions or concessions do not apply to the purchase of an existing dwelling.

NSW NEW HOME GRANT SCHEME

This government initiative in NSW provides for concessions on duty by way of a $5,000.00 grant for new homes not exceeding $650,000.00 and for vacant land not exceeding $450,000.00. The initiative applies to agreements entered into after 1 July 2012.

The scheme provides the grant of $5,000.00 towards new homes, homes off the plan and vacant land on which a new home will be built and is taken off the duty payable at the time of payment.

Transactions that are eligible for the grant include:-

1. New home- agreement for purchase of land that is the site of a new home that is complete and ready for occupation. A new home is a home that has not previously been occupied and sold as a residence. It also includes substantially renovated homes.

2. Off the plan purchase- agreement for purchase of land to be used as the site of a new home which is to be built before the agreement is complete.

3. Vacant land – agreement for vacant land which is to be used as a site for a new home which is not an off the plan purchase. Please note, construction of the home by way of laying of foundations must commence within 26 weeks of the completion of the Contract (the Chief Commissioner may allow a longer period if needed). It does not, however, put a limit on the completion of the construction of the house.

Eligible purchasers for this initiative include natural persons, companies, trustees of a trust and is available for investors as well as those that choose to live in the property. In addition, there is no limit as to how many times a purchaser can apply for the grant.

Applications for the grant must be made within three months from the date of the Contract.

The grant is not available for agreements if they are eligible for a duty exemption and concession under the First Home – New Home Scheme or a grant under the First Home Owner Grant Scheme.

FIRST HOME OWNER GRANT (NEW HOMES)

The First Home Owner Grant (New Homes) offers eligible first home owners a $15,000.00 grant to purchase a new home or build their home for agreements entered into on or after 1 October 2012.

The grant only applies to new homes and does not apply to the purchase of an established home, vacant land, business premises or holiday house.

Applicants who purchase a new home or build a new home which has a total value of more than $650,000.00 will not be eligible for the grant under this scheme.

Unlike the NSW New Home Grant Scheme a purchaser must be a natural person and not a company or trust.

If you require assistance with a property matter, please contact Tom Ellicott on (02) 4220 7100 or lawyers@alg.com.au.

Source: revenue.nsw.gov.au/