STAMP DUTY CHANGES TO THE 2012 STATE

BUDGET

 The 2012 NSW State Budget resulted in numerous changes being made to property grants, from 1 JulyStamp Study Changes 2012:

1.   First Home – New Home: Stamp Duty implications

  • If you are buying a new home and it is your first home, you will be exempt from paying stamp duty for homes valued up to $550,000.
  • If you are buying a new home valued between $550,000 – $650,000 you will be entitled to stamp duty concessions.
  • If you are buying vacant land you will be exempt from paying stamp duty for land valued up to $350,000.
  • If you are buying vacant land valued between $350,000 – $450,000 you will be entitled to stamp duty concessions.

2.   First Home Owner Grant (New Homes) Scheme

  • If you are a first home buyer and purchase or build a new home (house and land) valued up to $650,000 from now until 30 September 2012 you will still be entitled to a $7,000 grant. From 1 October 2012 until 31 December 2013 you will be entitled to a $15,000 grant. This will be reduced to a $10,000 grant from 1 January 2014.
  • Eligible transactions include:
  • Contracts made on or after 1 October 2012 for the purchase of a new home in NSW.
  • Comprehensive home building contracts made on or after 1 October 2012 by the owner of the land in NSW or a person who will, on completion of the contract be the owner of land in NSW, to have a home built on it.
  • The building of a new home in NSW by the owner builder if the building work commences on or after 1 October 2012.

3.   New Home Grant Scheme

  • This is aimed at non-first home buyers and includes investors and owner occupiers.
  • If you are buying a new home (off the plan or newly built) valued up to $650,000, you will be entitled to a $5,000 grant. You can elect to either reduce the stamp duty payable by $5,000 or receive a payment of $5,000.
  • If you are buying vacant land valued up to $450,000, intending to build a new home you will be entitled to a $5,000 grant. You can elect to either reduce the stamp duty payable by $5,000 or receive a payment of $5,000.
  • If you are buying vacant land you must commence laying the foundations within 26 weeks of completion of the purchase, however, there is no time limit on how long it takes to complete building the home.
  • Eligible transfers are:
  • New home purchases (including substantially renovated home).
  • Off the plan purchases.
  • A vacant land purchase (intended to be used as the site of a new home which is not an off the plan purchase).

 

Posted in: Property.
Last Modified: September 12, 2012

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