On 11 May 2016 amendments were made to several NSW state revenue Acts.
First Home – Owner Grant Scheme
This scheme is available to first home buyers who purchase or build a new home.
A new home includes a substantially renovated home. The definition of a substantially renovated home now requires that the home must be renovated so that all (or substantially all) of a building is removed or replaced. The renovations may, but need not involve the removal or replacement of foundations, external walls, interior supporting walls, floors or staircases.
A home that has been occupied, including by a builder or a tenant, is not considered a new home.
|On or after 1 Jan 2016
|Between 1 Oct 2012 and 31 Dec 2015
First Home – New Home Scheme – stamp duty exemption
This scheme provides an exemption of stamp duty for eligible purchasers who purchase their first (new) home valued up to $550,000 (and concessions for new homes valued between $550,000 and $650,000). This only applies to brand new homes that have not previously been sold as residential premises or lived in prior to the current transaction, or a substantially renovated home.
A stamp duty exemption is also available to eligible purchasers buying a residential vacant block of land on which they intend to build their first home for land valued up to $350,000 (and concessions on duty for land valued between $350,000 and $450,000).
NSW New Home – Grant Scheme
This grant is available to anyone (including companies, trusts, investors and owner occupiers) and provides a grant of $5,000 towards the purchase of new homes (including substantially renovated homes), off the plan and vacant land on which a new home will be built (introduced to stimulate the construction of new homes).
The grant is paid as a credit against your liability for duty on the transfer. Each purchaser is limited to 1 grant per financial year. The grant is not available where the transaction was eligible for a duty exemption/concession under the other two schemes mentioned above.
Abolition of mortgage duty
Duty is not payable on mortgages executed on or after 1 July 2016.
After that date mortgages are not required to be stamped or marked and can be registered without such stamping or marking.
This article is general information only and should not be relied on without obtaining further specific information.
By Michaela Schmidt