Property Update – First Home Buyer’s Grant and Halving Stamp Duty for Non-First Home Buyers
Author:
Nicole Rockliff
Publish Date: June 17, 2009
First Home Buyers
The State Government has recently announced on 16 June 2009 an extension of the New South Wales New Home Buyers Supplement of $3,000 where the buyer is purchasing a newly constructed home or building his/her first home. The State Government has extended the $3,000 payment until 30 June 2010 in an attempt to help stimulate the economy. The state supplement works in addition to the First Home Owners Grant and applicants for the New South Wales New Home Buyers Supplement will have to meet the same eligibility criteria as that for the First Home Owners Grant.
The first home buyer must be building a new home or purchasing a newly constructed home and must have entered into the contract between 11 November 2008 and 30 June 2010 (inclusive). A new home (including units and apartments) is a home which has never been occupied as a place of residence, including by the builder or any tenant/occupants. It must be the first sale of the home.
Non-First Home Buyers
The State Government also announced the introduction of New South Wales Housing Construction Acceleration Plan which will allow non-first home buyers to halve the applicable stamp duty when purchasing a newly constructed home of a value not exceeding $600,000. The contract must be first executed on or after 1 July 2009 and before 1 January 2010. After January 2010 the reduction of stamp duty no longer applies.
The number of properties which may be purchased under the Acceleration Plan is unlimited. However the agreement/transfer must be for the entirety of the land.
A new home under this Plan is a home which has not been previously occupied or sold as a place of residence. Unless the property is an “off the plan” purchase agreement, the new home must be complete and ready for occupation.
First home buyers are not eligible for the Housing Construction Acceleration Plan. You do not need to be an Australian citizen or permanent resident or a natural person to be eligible for the Acceleration Plan grant.
A substantially renovated home may be eligible for the grant if the home is a taxable supply as the sale of a new residential premises under s40-75 (1) (b) of the A New Tax System (Goods and Services Tax) Act 1999 or if the home, as renovated, has not been previously occupied or sold as a place of residence.
If you are considering purchasing a new property and are eligible for the New South Wales New Home Buyers Supplement or the New South Wales Construction Acceleration Plan, please do not hesitate to contact us. Rockliffs’ experienced team of property and conveyancing lawyers can assist you with the purchase of residential and “off the plan” properties, and will guide you through the transaction from start to finish.
For further information or assistance please contact Rockliffs on 02 9299 4912 or email us at lawyers@rockliffs.com.au