Changes to First Home Buyer Grants, Stamp Duty begin 1 July

Changes to First Home Buyer Grants, Stamp Duty begin 1 July

21 April 2017

Changes to first home buyer grants and stamp duty concession come into effect in many states from 1 July, 2017. To see how you may be affected, check out this timely summary from the Property Observer website.

Victoria

In Victoria, stamp duty will be waived on any new or established property purchased up to $600,000.

Regional Victoria will see the First Home Buyer Grant double for new homes sold up to the value of $750,000.

Concessions for stamp duty will be applied on a sliding scale for homes valued from between $600,000 and $750,000.

More information:Victorian State Revenue Office

New South Wales

First-time buyers of new homes in NSW have a full exemption from stamp duty up to $550,000 and concessions for new homes valued between $550,000 and $650,000.

From 1 January 2016, the NSW grant is now a $10,000 First Home Owner Grant for new homes purchased for up to $750,000.

More information:NSW Office of State Revenue

Queensland

QLD’s $20,000 First Home Buyers Grant is a one off payment available until midnight on 30 June 2017 for people building or buying a new home in QLD.

In July, the grant reverts back to $15,000.

Stamp duty concessions are also available for first-time buyers; full exemption up to $500,000 and a sliding scale from between $500,000 and $549,000.

More information: Queensland State Revenue Office

Western Australia

A temporary $5,000 boost to the FHOG is available for eligible first home buyers who enter into a contract between 1 January and 31 December 2017 to purchase or construct a new home.

Owner builders who commence laying foundations of their home between those dates, will receive a boost of $5,000 in addition to the $10,000 FHOG.

First home owners may qualify for the grant and/or the first home owner rate of duty if they are either purchasing an established home or if they are building or purchasing a new home.

Western Australia also offers stamp duty concessions for first-time buyers on all properties; full exemption up to $430,000 and a sliding scale from between $431,000 and $530,000.

More information: West Australian Government – Department of Finance

South Australia

Full stamp duty concessions are available on transfer of a new apartment or substantially refurbished apartment for a contract entered into from 31 May 2012 to 30 June 2014 (capped at stamp duty payable on a $500 000 apartment) and a partial concession from 1 July 2014 to 30 June 2017.

For contracts entered into between 20 June 2016 and 30 June 2017 (inclusive), the concession applies to purchases of off-the-plan apartments located anywhere in South Australia.

South Australia also offers stamp duty concessions for the purchase of off-the-plan apartments in specified areas.

More information: Revenue SA

Tasmania

The First Home Owner Grant is a one-off payment for eligible first home buyers/builders. From 1 January 2016, the FHOG payment is set at $20,000 for eligible purchasers of new homes, homes off the plan and owner/builder homes. The payment drops to $10,000 for transactions entered into after 1 July 2017.

More information: Tasmanian State Revenue Office

Northern Territory

The Territory Revenue Office can confirm that there are no plans to change or abolish the $26 000 first home owner grant currently available on the purchase or construction of a new home.

More information:Northern Territory State Government

ACT

The First Home Owner Grant was reduced to $7,000 on 1 January 2017.

The ACT also offers stamp duty concessions for first-time buyers buying new homes; full concession up to $455,000 and a sliding scale to $585,000. Gross income thresholds apply in the ACT.

A first home owner grant cap applies to eligible transactions. The cap limits the total value of eligible properties (i.e. total value of home and land) to $750,000 or less.

More information: ACT Revenue Office