Padstow For all of our first home buyers in Padstow, Padstow Heights, Revesby, Revesby Heights, Panania, Milperra, East Hills and Picnic Point, we thought it would be useful to explain some of the details of the NSW Government’s First Home-New Home Scheme.
The First Home-New Home Scheme provides exemptions and concessions on transfer duty taxes for eligible buyers. Eligible buyers include people who are purchasing vacant land on which they intend to build their first home, and some new homes.
Purchasing vacant land to build your first home on? The First Home-New Home Scheme provides exemption from paying duty on vacant land valued up to $300,000 or concessions on duty for vacant land valued between $300,000 and $450,000.
If you’re buying a pre-built new home, the First Home-New Home Scheme provides exemptions on transfer duty on new homes valued up to $500,000 and concessions on transfer duty for new homes valued between $500,000 and $600,000.
It is important to note that First Home-New Home Scheme doesn’t apply to the purchase of an existing dwelling other than brand new homes, however the First Home Owners Grant Scheme (FHOGS) is still available to first home buyers of existing residential homes.
Getting back to the First Home-New Home Scheme, here are some of the criteria for first home-new home buyers:
- At least one first home buyer must be an Australian citizen or a permanent resident.
- The agreement and/or transfer must be for the purchase of the whole of the property.
- All purchasers must be ‘eligible’ purchasers.
- At least one eligible purchaser must occupy the home as their principal place of residence for a continuous period of six months, commencing within twelve months of completion of the agreement. (Where an eligible purchaser was a member of the permanent forces of the Australian Defence Force and all eligible purchasers were enrolled on the NSW electoral roll as at the date of the agreement or transfer, on or after 21 October 2009, then all purchasers are exempt from this residency requirement.)
- The first home buyer/s must be purchasing at least 95% of the property.
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/de facto has not:
- at any time owned (either solely or with someone else) residential property in Australia other than property owned solely as trustee or executor.
- at any time been the holder (either solely or with someone else) of a leasehold interest granted by the Commonwealth in residential property in the Australian Capital Territory.
- previously received an exemption or concession under the First Home—New Home scheme.
Note: If all purchasers are not ‘eligible purchasers’ you may still qualify for a partial concession if the first home buyers are purchasing at least 50% of the property. This information was sourced from the First Home-New Home Scheme page of the NSW Government website, where you can also find links and further information.
