NSW 2013 Budget extends First Home Owner Grant (New Homes) Scheme
The First Home Owner Grant (New Homes) grant of $15,000 has been extended for a further period of two years under the State’s 2013 budget. The $15,000 grant will apply to certain contracts entered into on or before 31 December 2015. The grant will be reduced to $10,000 from 1 January 2016.
The First Home Owner Grant (New Homes) is available to eligible first home owners who purchase or build a new home where the total value of the property (including the land value) is less than $650,000. The grant does not apply to purchases of established homes, vacant land, business premises or holiday houses. A new home is one that has not previously been occupied or sold as a residence, or has been substantially renovated or built to replace demolished premises.
Under the grant at least one applicant for the grant must occupy the home as the principal place of residence for a continuous period of 6 months, commencing within 12 months from the date of registration of the Transfer.
This is separate from the New Home Grant, which is a grant of $5,000 that is available to purchasers who buy a new or off the plan home up to the value of $650,000. The grant is also available for the purchase of vacant land up to the value of $450,000, on which a new home will be built and construction of which must commence within 26 weeks of the agreement/transfer. Eligible purchasers include individuals, companies and trustees who may be investors or owner occupiers. There are no residency requirements, and there is no limit on the number of times a purchaser can receive the grant (across multiple properties).
If you receive the First Home Owner Grant (New Homes), you cannot also receive the New Home Grant for the same property. The New Home Grant is not available for transactions that are eligible for the First Home Owner Grant (New Homes) or the duty exemption/concession afforded under the First Home – New Home Scheme.
Author: Kristie Carlile
Contributing partner: Melissa Potter