Are you confused about what government grant(s) you can receive as first home buyers in New South Wales?
FirstPoint Mortgage Brokers are here to help and educate you and make your journey as First Home Buyers and Government Grant an easy process.
In recent years, there have been several significant changes to the rules and regulations surrounding first-home buyers in Australia. These changes aim to help young Australians get onto the property ladder and are designed to make buying a first home more accessible and affordable.
NSW first home buyers can now choose upfront stamp duty or annual land tax: here’s how it works.
First Home Buyers that purchase property between $650,000 – $1,500,000 will now have the choice of making a payment upfront stamp duty and annual land tax based on property value. However, first-home buyers are eligible to receive a refund if they qualify for this first-home buyers’ selection scheme and switch to the Annual Tax scheme. At least 6000 new homeowners in NSW are likely to apply each year to the new land tax regime, and Revenue NSW estimates that 2,500 people may apply for a refund in 10 business days.
What is the First Homeowner Grant?
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.
Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.
NSW Stamp Duty Waiver/Discount
- No stamp duty up to $650,000
- Discounted stamp duty from $650,000 – $800,000
- No stamp duty up to $350,000
- Discounted stamp duty from $350,000 – $450,000
All your questions about the first homeowner’s grant answered.
To help you to understand the First Homeowners Grant, we have compiled a list of answers to some of the most frequently asked questions:
- What happens if I leave my home in the first 12 months? For example, if you have lived in your home for six months, you may keep the grant, but if you move out before this time, you need to repay the funding.
- Can I apply for the first homeowner grant as a temporary resident? Unfortunately, first-home owner benefits aren’t available for temporary residents. They also can’t be retroactively applied for once permanent residency is obtained.
- My partner and I are buying the property jointly; neither of us has owned a property before. Do we each get a grant? No. A single grant is payable per property transaction, not per person.
- Does my income affect the grant, and is the grant taxed? No, the grant is not means tested, and you do not have to pay tax on it.
- What sort of home qualifies me for the grant? Depending on the state or territory, an eligible home may be a new or established Australian house, home unit, flat, or a self-contained fixed dwelling that meets local planning standards. Again, the specific rules vary by state.
- Will I be eligible for the First Homeowner if I buy an on-site home in a caravan park? You would qualify for the grant provided the home is fixed (i.e. not moveable), but you would not be eligible if you bought a moveable house such as an unfixed mobile home or a caravan.
- I am buying an existing home. Does that qualify me for the grant, or must it be a new home? This depends on the state, with many now limiting the grant to purchasers of new or substantially renovated homes.
- I’m buying a home in Australia but own property outside Australia. Does that mean I don’t qualify for the grant? You can be eligible for the assistance provided you have never owned property in Australia.
- I inherited a property. Can I claim the First Homeowner Grant for that? No. You must be a buyer or builder of the property.
- I own an investment property — will I still be able to apply for the scheme? If you have owned residential land since July 1, 2000, and use it only for investments, you may apply for a grant for another land.
The government change rules and regulations, so if you want more info look up First Home Buyer | Revenue NSW. Or give us a call and we will guide you every step on the home buying journey.