Jul 3rd, 2015
First Home—New Home shared equity arrangements allow eligible purchasers to buy property with other parties and still receive a concession. To qualify, the
eligible purchasers must buy at least 50 per cent of the property. The value limits and other eligibility criteria of First Home—New Home apply.
Transfer duty is calculated with reference to the proportion of the property purchased by other parties. However, this interest is disregarded if it is not more than five per cent.
You can calculate the exact amount of your concession using the First Home—New Home
calculator on OSR’s website.
Note: If the first home buyer’s spouse has previously owned a home or received a benefit under First Home—New Home, the first home buyer will not
be entitled to the shared equity arrangements concession under First Home—New Home, regardless of whether or not the spouse is also a purchaser.
NSW New Home Grant Scheme
The NSW New Home Grant Scheme has been introduced to stimulate the construction of new homes in NSW. The scheme provides a grant
of $5000 towards the purchase of new homes, homes off the plan and vacant land on which a new home will be built.
For purchasers to be eligible to receive the grant, the value of the new home must not exceed $550,000 and the value of vacant land must not exceed $350,000.
The following types of agreement or transfer are eligible for the grant:
- A new home purchase. That is an agreement or transfer for the purchase of land that is the site of a new home that is complete and ready for occupation.
- An off the plan purchase. That is an agreement or transfer for the purchase of land intended to be used as the site of a new home, which is to be built before completion of the agreement.
Payment of the grant
The payment of the grant will be administered by way of applying the amount of the new home grant as a credit against liability for duty on the agreement or transfer.
Where the duty payable (including the duplicate and transfer) is greater than $5000, only the difference between the duty payable and
$5000 is required to be paid.
Where the duty payable (including the duplicate and transfer) is less than $5000, no duty is required to be paid and a payment of the difference between the $5000 grant and the duty payable will be issued by way of a cheque.
Eligibility requirements for transactions
- Agreements for sale or transfers of vacant land or a new home will be eligible for consideration under the scheme where they are entered into on or after 1 July 2012.
- A new home is a home that has not previously been occupied or sold as a place of residence, and includes a substantially renovated home.
- An agreement or transfer is eligible if it is for the acquisition of a new home that is complete and ready for occupation.
- For vacant land, construction must commence with the laying of foundations within 26 weeks after the agreement or transfer is completed, or within any longer period allowed by the Chief Commissioner.
- Applications for the grant must be made within three months of the date of the agreement (or transfer when there is no preceding agreement).
- The agreement or transfer must be for the whole of the land. If the land is a parcel of land on which two or more homes are built or being built, the agreement or transfer must be for that part of the land that is an exclusive occupancy.