The First Home Buyers Assistance Scheme commenced from 1 July 2017 to provide exemptions and concessions on stamp duty for eligible first home buyers.
The scheme provides a total exemption from stamp duty for homes valued up to $650,000 and concessions on duty for homes valued between $650,000 and $800,000. This scheme provides substantial savings for first home buyers with a purchaser buying property with a value of $650,000 saving $24,740.
To receive the exemption, purchasers must:
1. Be classified as eligible purchasers
- The purchaser (and their spouse) has never owned residential property in Australia.
- The purchaser (and their spouse) has never received a First Home Buyers exemption or concession.
- It is important to note that if a spouse of a purchaser owns or has owned property or received an exemption, the purchaser will not be entitled to receive the concession or exemption, even if their spouse is not a purchaser of the current property.
2. Meet the eligibility requirements
- The whole property must be purchased/transferred.
- All eligible purchasers must be natural persons (not a company or trust) and over the age of 18 years.
- At least one eligible purchaser must be an Australian citizen or permanent resident.
- Together, eligible purchasers must acquire at least a 50% interest in the property.
3. Meet the residence requirement
- At least one of the eligible purchasers must reside in the home as their principal place of residence for a continuous period of 6 months. The occupation period must commence within 12 months from settlement.
A further measure to assist first home buyers is provided when building a new home. A $10,000 grant will be provided to those who build new homes with a value up to $750,000 and those who purchase new homes with a value up to $600,000.
Insurance duty on lenders mortgage insurance for loans for more than 80% of the purchase price has been abolished for first home buyers. This will bring savings of approximately $2,100 for first home buyers of a property worth $650,000 where a deposit of $50,000 is paid.
If you are purchasing your first home and wish to discuss your eligibility for the First Home Buyers Assistance Scheme and your conveyancing needs, please contact the Kells team on 4221 9329.