First Home Buyer? Fancy a further saving? You have 12 months to enjoy the benefits of the expansion of the First Home Buyer Assistance Scheme
At the end of July it was announced there would be an extension of the current First Home Buyer Assistance Scheme (‘the Scheme’). The proposed changes are set to become operational from 1 August 2020 and continue for 12 months thereafter. If you are an eligible first home buyer under the Scheme then you are now potentially entitled to a further saving. The increased thresholds are as follows:
- First home purchases up to $800,000 are now exempt from stamp duty. This has increased from the previous threshold of $650,000.
- First home purchases from $800,000 to $1,000,000 will receive a concessional discount.
- Vacant land purchases up to $400,000 are exempt from stamp duty. This was previously limited to purchases below $350,000.
- Vacant land purchases from $400,000 to $500,000 will receive a concessional discount.
Have the eligibility requirements for the scheme changed?
The eligibility requirements for the scheme remain the same, being that:
- the contract date must be on or after 1 July 2017;
- you must be an individual;
- you must be over 18;
- you or your partner, must never have owned or co-owned residential property in Australia;
- you or your 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;
- you must move into the property within 12 months of buying it; and
- you must live in the property for six continuous months.
How much can I now save with the first home buyer assistance scheme?
Eligible first home buyers currently have access to numerous other schemes such as the First Home Owner Grant and potentially the HomeBuilder scheme. The largest savings are available to those who meet the threshold for all three schemes simultaneously.
For example, if you were purchasing land to build on with a total value being $750,000 (house and land), you may be eligible to receive the $10,000 First Home Owner Grant, the $25,000 HomeBuilder grant and a complete stamp duty concession.
It is important to note that the only way to access all three is to remain below the amount of $750,000 if building on vacant land. In relation to off the plan purchases you will not receive the $10,000 grant if the purchase price is over $600,000, but will be eligible for the HomeBuilder scheme and stamp duty exemption.
For more information regarding the HomeBuilder scheme click the link: https://www.marsdens.net.au/about-us/latest-news/the-governments-new-homebuilder-scheme/.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.