Tuesday, 5 March 2013

What is the NSW New Home Grant Scheme?

What is the NSW New Home Grant Scheme? 

From the 1st July most purchasers of new homes in NSW valued up to $650,000 will be eligible for a $5,000 New Home Grant.

The Gant will also be available to purchasers of vacant land value up to $450,000 on which a new home will be built.

Who can apply?
The purchaser can be any entity, including natural persons, a company, or trustee of a trust. It applies to investors as well as owner occupiers.

Can I get the grant more than once?
Yes, as long as the requirements are satisfied.

What agreements or transfers are eligible? 
The following types of agreement or transfer are eligible for the grant:  A new home purchase An off the plan purchase A vacant land purchases.

Can I apply for the New Home Grant and the Regional Relocation Grant?
Yes, if eligible you can apply for the $5,000 New Home Grant and the $7,000 Regional Relocation Grant.

For a vacant land purchase when must I commence building the home? 
The laying of foundations for the home must commence within 26 weeks of completion (settlement) of the purchase.

Can I get the grant if I’m purchasing an existing home to knock down and build a new home on the land? 
No, the agreement must be for the purchase of vacant land on which you are going to build a home, or a purchase of a completed new home or a new home off the plan.

How will the New Home Grant be administered? 
You can either reduce the duty payable by $5,000 on your agreement or transfer or pay the full duty and receive a payment of $5,000.
This will be paid after completion of your purchase.

How will it work if the duty payable is less than $5,000?
You can pay the duty and receive a payment of $5,000 or you can pay no duty and receive a payment of the difference between $5,000 and the duty payable.

This information was correct at the time of print, for the most up to date information please refer to the Office of State Revenue website: www.osr.nsw.gov.au

source:
http://www.hartigangrove.com.au


What is the First home Owner Grant (New Home) Scheme?
The First Home Owner Grant (New Home) Scheme provides a grant of $15,000 to help eligible first home buyers to purchase or build a new home. It will replace the current $7,000 First Home Owner Grant from 1 October 2012.
First Home Owner Grant Changes
From 1 October 2012, the $7,000 First Home Owner Grant will be replaced by the $15,000 First Home Owner Grant (New Homes) Scheme. First home owners who purchase or build a new home where the contract date is on or after 1 October 2012 will be eligible for the $15,000 grant. The grant will reduce to $10,000 on 1 January 2014 for new homes or builds which have a contract date on or after 1 January 2014. The $7,000 first home owner grant for established properties ends on 30 September 2012 and will not be available where the contract date is on or after 1 October 2012.
First Home Owner Grant Cap
The $650,000 cap will apply to all new home transactions where the contract date is on or after 1 October 2012. Applicants who purchase a new home or build a home which has a total value of more than $650,000 will not be eligible for the First Home Owner Grant (New Homes) Scheme.
What duty is payable?
From 1 July 2012, no duty is payable where the value of the property is not more than:
$550,000 (in the case of the acquisition of a new home), or
$350,000 (in the case of the acquisition of a vacant block of residential land intended to be the site of a new home).
Where the value of the property is between $550,000 and $650,000 the duty payable is 15.74% of the dutiable value LESS $55,090.
Where the value of the land is between $350,000 and $450,000 the duty payable is 24.74% of the dutiable value LESS $136,070.
This information was correct at the time of print, for the most up to date information please refer to the Office of State Revenue website: www.osr.nsw.gov.au