First Home Buyer Changes

What are the new amendments?

First home buyers currently pay no stamp duty on all properties under $500,000.00 and receive a discount on stamp duty for properties valued between $500,000 and $600,000.

However, with the introduction of the new scheme, from 1 January 2012, the stamp duty concessions will only apply to newly constructed homes - including those built off the plan.

The new scheme will provide full transfer duty exemptions for eligible first time home buyers purchasing a newly built home valued up to $500,000, and partial transfer duty exemptions for homes that cost between $500,000 and $600,000.

The $7,000 first time home buyers grant will continue to be available to eligible, first time home buyers.

An 'eligible purchaser' is a natural person (i.e. not a company or trust) at least 18 years of age, who has not, and whose spouse or de facto has not:

• at any time owned (either solely or with another person) residential property in Australia, other than property solely owned as trustee or executor
• at any time been the holder (either solely or with another person) of a leasehold interest granted by the Commonwealth in residential property in the Australian Capital Territory
• previously received an exemption or concession under "First Home Plus".
• The agreement or transfer must be for the acquisition of a first home which is new or a vacant block of residential land, intended to be the site of a first home. This includes the acquisition of:
  • a new home (that is a home that has not been previously occupied, or sold as a place of residence)
  • a substantially renovated home
  • a vacant block of residential land (that is an agreement for the sale or transfer of vacant land that is intended to be used as the site of a first home).

The impact on purchasers

Purchasers need to be aware, that between now and January 2012, there is potential for increased conveyancing matters in NSW as first time home buyers attempt to make the most of existing benefits before they are discontinued.