The New South Wales Government has recently made some changes to grants for First Home Buyers and those purchasing existing homes. With all the different grants and saving available, it is hard to know what you could be eligible for. We have outlined what grants you could be entitled to and what changes have been made to existing grants.

First Home Owner Grant changes
From the 1st of October 2012, first home buyers purchasing or building new homes will be eligible for the $15,000 First Home Owner Grant (New Homes) Scheme. This replaces the $7,000 first home owner grant.
This grant will reduce to $10,000 on 1 January 2014.

The $7,000 First Home Owner Grant for established properties ends on 30 September 2012.

First Home Owner Grant cap
On the 1st of October 2012, the current cap of $835,000 reduces to $650,000. Applicants who purchase a new home or build a home which has a total value of more than $650,000 will not be eligible for the First Home Owner Grant (New Homes) Scheme.

Stamp Duty

Vacant Land

The First Home Owner Grant does not apply to the purchase of vacant land but does apply to people building their first home where the total value of the property (land and improvements) will not exceed $835,000.

Eligible first home buyers purchasing vacant residential land to build their home on will pay no duty valued up to $300,000, and will receive concessions on duty for vacant land valued between $300,000 and $450,000.
To calculate the new home concession between $300,000 and $450,000 multiply the purchase price by 0.1049 and subtract $31,470. Refer to the quick reference table below.

 

 

 

 

 

 

 

First Home Buyers
First Home Buyers will be exempt from paying stamp duty for new homes up to $500,000. Homes valued between $500,000 – $600,000 will receive a partial exemption. To calculate the saving multiply the purchase price by 0.2249 and subtract $112,450. Refer to the quick reference table below.

 

 

 

 

 

 

 

 

 

 

 

Over 55s
New South Wales residents aged 55 years or older who purchase a new home valued at no more than $600,000, will be exempt from paying stamp duty. You need to act quickly as the contract must be signed before the end of this month. (30.6.2012).
The purchasers must have owned and occupied a home in the 12 months prior to buying this new property. The purchasers must sell their previous property either prior to or within six months after the settlement of their new property.

 

Regional Relocation Grant
The $7,000 Regional Relocation Grant is still in place in New South Wales for metropolitan home owners who sell their home and then purchase property in regional and rural centres. This grant will expire 30th June 2015.

Visit the Office of State Revenue website for full eligibility on all grants.