As part of the COVID-19 Recovery Plan to support the property and construction industry, the NSW Government has extended the stamp duty exemptions under the First Home Buyers Assistance Scheme (the Scheme).
Under the Scheme, first home buyers looking to purchase new homes or a vacant block of land for the purposes of building a new home will now be exempt from paying stamp duty where:
- the value of the new home is no more than $800,000 (previously $650,000); or
- the value of the vacant block of residential land is no more than $400,000 (previously $350,000).
The Scheme also provides for a concessional rate of duty where:
- the value of the new home is more than $800,000 but less than $1million; or
- the value of the vacant block of residential land is more than $400,000 but less than $500,000.
These new thresholds will apply to contracts entered between 1 August 2020 to 31 July 2021.
To be eligible for an exemption or concession, you must be a first home buyer and occupy the property as your principal place of residence for a continuous period of 6 months within 12 months of completion of your purchase. In the case of vacant land, the Chief Commissioner must be satisfied the land is intended to be used as the site of a home to be occupied as the principal place of residence of one of the eligible purchasers.
At least one of the eligible purchasers must be an Australian citizen or permanent resident and acquiring at least a 50% interest in the property. Further, if your spouse has previously owned residential property or previously received an exemption or concession under the Scheme – you may not be eligible for the full or proportionate concession regardless of whether your spouse is or is not also a purchaser.
If you are looking to purchase a property and are wondering if you are eligible for the stamp duty exemption under the Scheme, contact us today.