Different states of Australia have new strategy for offers of First Home Loan grants.
Victoria BIG CHANGES
LOTS OF CHANGES
Victorian Budget 2011-12
The Victorian Government has announced a number of state taxation measures as part of its 2011-12 Budget. These include its election commitments made in 2010.
First home buyers
The Victorian Government will extend the First Home Bonus and Regional Bonus until 30 June 2012.
The $13,000 First Home Bonus is available for the purchase by first home buyers of newly constructed homes in metropolitan Melbourne.
Combined with the First Home Bonus, the $6500 Regional Bonus is also available for the purchase of newly constructed homes in Regional Victoria.
This is in addition to the First Home Owner Grant of $7000.
A cap applies to the Bonus, Regional Bonus and Grant. (further information is available here).
The availability of the Bonus and the Regional Bonus has been extended from contracts entered into on or before 30 June 2011 to contracts entered into on or before 30 June 2012.
Land Transfer Duty
For eligible first home buyers
Land Transfer Duty rates will be reduced for eligible first homebuyers purchasing principal places of residence valued up to $600,000.
Land Transfer Duty will be cut by 20 per cent on 1 July 2011, followed by additional 10 per cent cuts on 1 January 2013, 1 January 2014 and 1 September 2014, totalling a cumulative 50 per cent reduction by 2014-15.
Extended duty relief for eligible seniors
The current threshold for duty relief for pensioners and concession card holders will be extended from $440,000 to $750,000 from 1 July 2011.
Additionally, the concession will be made available to self funded retirees who hold a Commonwealth Seniors Health Card.
Eligible pensioners and concession card holders will continue to receive a full duty exemption for residential properties valued up to $330,000 which are purchased as their principal place of residence.
Concession for farmers under 35 years of age
From 1 July 2011, young farmers aged under 35 buying their first farmland property will receive a duty exemption on farmland purchases valued up to $300,000. In addition, a concession applies for farmland properties between $300,000 and $400,000.
Reform of Land Rich Duty
The Government has announced it will reform Victoria's land rich duty provisions by adopting a landholder duty model that will ensure transactions that give effect to changes in ownership or control of entities holding land and other property are brought into the stamp duty base.
The landholder duty model will ensure greater consistency in the treatment of direct and indirect acquisitions of land and will considerably reduce complexity and provide greater certainty to taxpayers. This reform is consistent with most other states and territories and will commence on 1 July 2012.
More detailed information on all these measures will be announced in due course.
New South Wales
First home benefits
The New South Wales Government is committed to helping as many young people as possible to buy their first home. We are about getting more young families into their first home and helping them to get on with establishing their lives.
First home benefits of up to $24,990 are available being the $7,000 First Home Owner Grant and a duty exemption of up to $17,990 under the First Home Plus Scheme.
First Home Owner Grant changes
First Home Owner Grant cap
On 1 January 2011, the cap was increased to $835,000. The $835,000 cap applies to all applications where the commencement date of the eligible transaction is on or after 1 January 2011. Applicants who purchase or build a home which has a total value of more than $835,000 will not be eligible for the grant.
The previous cap of $750,000 still applies where the eligible transaction commencement date falls between 1 January 2010 and 31 December 2010 (inclusive). Prior to 1 January 2010 there was no cap applicable.
First home benefits received for top 20 NSW suburbs and towns
• First home benefits received for top 20 NSW suburbs and towns - last 12 months
• First home benefits received for top 20 NSW suburbs and towns - from inception to 31 March 2011
Western Australia - NO change - Going with another strategy .
The Minister for Housing Troy Buswell has ruled out a boost to the first home buyers grant under the State's new housing affordability strategy.
It comes as he releases the State Government's long-awaited strategy to reduce the public housing waiting list and get more West Australians into their own homes.
The plan aims to create at least 20,000 additional affordable homes in Western Australia by 2020.
To reach the target, the government will create partnerships with the not-for-profit and private sectors and increase the number of keystart and shared equity home loans.
The strategy also includes more affordable lots through the Department of Housing and subsidised private rental opportunities.
Mr Buswell says a boost to the $7,000 home buyers grant was considered but he says other initiatives will be more effective.
"We ruled it out because my view is that in the current climate the better way for the Government to support first home buyers and people who are having trouble getting the funding they need to get into a house is by focussing on the role key start plays," he said.