First Home Buyer Benefits

(NB These benefits were current as of November 2021).

If you or someone you know is looking to enter the property market for the first time, there are currently two benefits available to eligible first home buyers in New South Wales.

The First Home Owner Grant & the First Home Buyer’s Assistance Scheme (FHBAS)

These two benefits are applicable for those purchasing or building a new home or looking for assistance in purchasing an existing home.

For the purpose of this legislation, a ‘New Home’ is defined as a home that has not been previously occupied or sold as a place of residence. It also includes a home that has been substantially renovated.

Substantial renovations are defined as renovations in which all, or substantially all, of a building is removed or replaced. So think; removal or replacement of foundations, external walls, floors, roof or staircases. Renovations of part of a house, for example updating a kitchen or bathrooms, don’t constitute as substantial renovations for the purposes of eligibility for the Grant.

If a home has been built to replace a demolished premise — this may also be eligible or a grant.

 

So exactly what is available and to whom?

FIRST HOME OWNER GRANT (New Home)

Funded by the NSW Government and administered by Revenue NSW (formerly known as the Office of State Revenue), a $10,000 grant 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.

 

Buying

If you purchase a newly built house, townhouse, apartment, unit or similar the purchase price must not exceed $600,000.

 

Building

If you purchase vacant land then Revenue NSW calculate the value of the vacant land plus the value of the building contract plus the cost of any building variations done together. The total combined cost must not exceed $750,000.

 

Substantial Renovations

If you purchase a home that was substantially renovated by the seller, the purchase price must not exceed $600,000. Eligibility conditions apply. Please check here to see if you are eligible.

 

Criteria

If you are looking to qualify for the First Home Owner Grant (New Homes) you must adhere to the following criteria:

• Be a person — not a company or trust
• Be a permanent resident or an Australia Citizen — unless you are a permanent member of the Australian Defence Force.
• Be at least eighteen years of age.
• You as an applicant or your spouse or de facto partner can have previously owned a residential property jointly, separately or with some other person in Australia and lived in it for more than 6 months.
• You or your spouse / de facto cannot have received the grant before.
• You or one of the applicants then need to occupy the home as your principal place of residence for a continuous period of six months, commencing within twelve months from the date you are registered on the title of the property. Unless, of course, if you are building a new home — then that time period starts from the construction completion date.

 

In addition to meeting the above, you will also be required to provide several proof of identity documents such as your Birth Certificate, Drivers Licence, and Medicare Card.

If you were born overseas, you are required to provide a certified copy of your foreign passport and current Australian Visa or Citizenship Certificate.

 

How to Apply

• You can apply either directly through Revenue NSW or through an approved agent, such as your bank or financial institution.

 

FIRST HOME BUYER'S ASSISTANCE SCHEME

If you’re a first home buyer, you may be entitled to a concessional rate of transfer duty or even an exemption from paying it all together under the First Home Buyers Assistance scheme (FHBAS).

Unlike the First Home Owner Grant, the FHBAS applies to

• buying an existing home
• buying a new home and
• vacant land on which you intend to build a home.

 

The transfer (stamp) duty thresholds from 1 August 2021

New Homes:

• valued less than $650,000 will be eligible for a transfer duty exemption
• valued between $650,000 and $800,000 will be eligible for a concessional rate of duty, based on the value of your home

Vacant Land:

• valued less than $350,000 will be eligible for a transfer duty exemption
• valued between $350,000 and $450,000 will be eligible for a concessional rate of duty, based on the value of your home

Existing Homes:

• valued less than $650,000 will be eligible for a transfer duty exemption
• valued between %650,000 and $800,000 wil be eligible for a concessional rate of duty, based on the value of your home

 

Who‘s Eligible?

To qualify for the FHBAS

• the contract date must be on or after 1 July 2017 and must be for the whole property
  Note: To be eligible for the increased transfer (stamp) duty threshold available between 1 August 2020 and 31 July 2021, the contract must be dated on or after 1 August 2020 and on or before 31 July 2021.
• you must be an individual, not a company or trust
• you must be over 18
• you, and your spouse or partner, must never have owned or co-owned residential property in Australia
• you, and your spouse or partner, must never have received an exemption or concession under this scheme
• at least one of the first home buyers must be an Australian citizen or permanent resident.

 

Buying with others who aren’t eligible

The FHABS applies when 50% or more of buyers are eligible.

• If you’re buying a home with others who aren’t eligible, you can still apply for the scheme if you and any other eligible buyers are purchasing at least half of the property. This is called a shared equity arrangement.
• Shared equity doesn’t apply if your spouse is one of the ineligible buyers.

 

How Much Will You Pay?

Use the FHBAS Calculator for all purchases made after 1 July, 2017.

 

How to apply for First Home Assistance

After you’ve exchanged contracts with the previous owner you can apply for either of the FHBAS by downloading and completing the:

1. First Home Buyers Assistance scheme application form and
2. Purchaser/Transferee Declaration form (individual)
   Note: New interactive form with declaration tick boxes in place of a statutory declaration.

You need to lodge your application forms and supporting documents with your solicitor or conveyancer.

 

 

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