Every Australian aspires to own a home that can offer permanent residence. However, with the rising cost of prices and living cost, many people are discouraged when it comes to purchasing the first home.
For that reason, the NSW government has come up with an offer scheme to assist first home buyers to achieve their Australian dream.
The First Home Buyers Assistance scheme that the government facilitates gives the buyers concessions or exemptions on transfer duty. Vacant blocks of lands where the individuals will set up their first home is also included in the concessions.
The scheme which took effect from 1 July 2017 has its details and proof of identity entailed in the Lodgement guide and application.
What is First Home Buyers Assistance Scheme all about?
Purchasers, through the First Home Buyers Assistance scheme, benefit from stamp duty exemptions of up to $650,000 on existing or new homes set up and duty concessions of between $650,000 and $800,000 for existing and new homes.
Vacant residential land block up to $350,000 that purchasers acquire to build a home is also not charged any duty. While the vacant land valuation of between $350,000 and $450,000 is entitled to a duty concession.
An individual has to meet the following criteria to qualify for any First Home Buyers Assistance:
The contract and the transfer, a buyer is involved in, ought to be for the whole property purchase.
All purchasers ought to qualify as eligible purchasers. That kind of purchaser is an individual aged above 18 years who hasn’t:
- Owned any residential property within Australia (unless solely as an executor or trustee).
- Been a recipient of a first home concession or exemption.
Within 12 months of the agreement completion, one of the parties is expected to have continuously occupied that home as the principal place of residence. Members of the Australian Defense force who are eligible purchasers are exempted from the requirement of the residence.
First Home Buyers Assistance Shared Equity Arrangements
An individual can collude with other parties to purchase a particular property and benefit from a concession under the First Home Buyers Assistance shared arrangement. While First Home Buyers Assistance scheme eligibility criteria and other value limits will apply, at least 50% of the property should be bought by a purchaser to be eligible.
The property proportion that other parties purchase is the base used to calculate transfer duty but if the proportion is less than 5% it is usually disregarded.
Mode of Application
The application for the first home buyers’ concession or exemption entails filling up the First Home Buyers Assistance Scheme form. Later on, the individual will attach on the form the supporting documents like the contracts exchanged showing the purchase of a vacant land or a first home.
False or misleading claims
When applying for the First Home Buyers Assistance scheme, a person who makes misleading or false statements knowingly can suffer substantial penalties.
To ensure only the genuine applicants benefit from the duty concessions and exemptions, investigations are conducted to check compliance. Normally, the government will counter check the application information with the historical and current data that commercial organization and other State and Territory agencies hold to ascertain the accuracy.
Other financial assistance that first home buyers can benefit
Apart from the concessions, first home buyers are also entitled to grants such as the following:
First home owner grant
An individual can apply and get a first home owner grant of about $26,000 for building or purchasing a new property to be the first home.
Household goods grant
Under this grant, an individual can get up to $2,000 inform of the grant as an assistance to purchase household goods when buying a new property to be the first home.
For an individual to obtain the financial assistance that can help in purchasing household goods, the following steps will have to be followed:
- Complete the grant application form, scan it and send to email@example.com.
- Receive within a period of 14 days, the payment put into the nominated account.
- Visit a local business to purchase the household goods.
- Make sure within the 90 days; you provide receipts.
If the goods on purchase are part of the renovation they will not qualify as household goods grant for furnishing established homes of first home buyers.
To benefit from such an offer get the household goods grant application form and guide.
First home owner discount
Under the first home owner discount scheme, you can be allowed a discount of up to $23,928.60 on stamp duty, if you intend to purchase an established property to use it as the first home. Only an established home that is less than $650,000 that a first home buyer will acquire will enjoy a full stamp duty concession based the first $500,000 valuation of that home.
A home that was previously occupied or sold but still remains a place of residence that can lawfully be occupied qualifies to be an established home.
For an individual to qualify for the first home owner discount
- All the applicants should be natural persons with at least one of the applicants being over the age of 18 years.
- One of the applicants should have a permanent residence in Australia or be a citizen of Australia.
- Applicants must acquire the whole property on their own right and not in any other capacity like through a trustee or an agent.
- The applicants together with their spouse should not have previously had a significant interest in any Australian residential property.
- Within 12 months after the settlement date, at least one of the applicants should occupy the home as the principal place of residence for about 6 months.
- Those applicants who are ineligible for the first home discount are the ones who are entitled to other home incentive schemes like senior, pensioner and carer concession, principal place of residence rebate, or first home owner grant.
To benefit from such an offer, get the first home owner discount application form and guide.
Home renovation grant
Under the home renovation grant, an individual obtains up to $10,000 as financial assistance to improve or renovate an established property that is to be the first home.
Only individuals who have gained approval for the first home owner discount are eligible to get the home renovation grant.
Do-it-yourself renovators or Owner-builders are ineligible to apply.
If you obtain the home renovation grant
You will have to hire a local business to improve and renovate the home.
The local business should have a permanent base and operation in the northern territory.
Whatever subcontractor that the local business engages ought to also be local businesses.
What a beneficiary obtains
You will get up to $10,000 in form of a voucher to spend on household goods.
The templates to utilize when obtaining this offer are
Home renovation invoice template
Home renovation grant quotation template