First Home Buyer Assistance Scheme
Purchasing your first home can be an exciting, but at times an also overwhelming experience. Ensuring that you are fully aware and understand what government support is available to you is vital and could save you thousands in the form of grants and incentives.
The NSW Government has recently announced the expansion of the First Home Buyer Assistance Scheme (FHBAS) to assist first home buyers entering into the property market.
As of 1 July 2023, the transfer duty exemption threshold for new and existing home purchases by eligible first home buyers will increase from $650,000 to $800,000, and the concessional rate will increase from $800,000 to $1 million. Changes have also been made to the residence requirements under this scheme, meaning purchasers must move into their homes within 12 months of settlement and live in the property for a continuous 12-month period rather than 6 months as is currently required.
Who can apply for the FHBAS?
To qualify for a waiver or reduction of transfer duty (also known as stamp duty) under the new changes to the scheme you must meet the following criteria:
- You must not own or have previously owned property in Australia
- Your spouse, regardless of whether they are on the contract of sale, must never have owned or co-owned any residential property in Australia or received an exemption or concession under this scheme.
- You must be an Australian citizen or permanent resident.
- You must move into the new home within 12 months of purchase and live there for at least 12 months.
What are the thresholds for concessions as of July 1st 2023?
New and Existing Homes
A waiver of transfer duty will apply to the purchase of all new and existing homes under $800,000, with a concessional rate applied to those valued between $800,000 and $1,000,000 based on the value of your home.
If you are purchasing a block of vacant land under the scheme that is valued under $350,000, you will not pay transfer duty. Concessions are available for land valued between $350,000.00 and $450,000.00.
How can we help?
Our friendly Property and Conveyancing team can assist you throughout the process of purchasing your first home. From reviewing contracts for sale to settlement, the team at Southern Waters Legal is here to help. If you would like further information or specific advice in relation to a property or conveyancing matter, please do not hesitate to contact us on (02) 9523 5535.
Disclaimer: The information contained in this article is provided as general information only. It is not intended to be legal advice and it should not be used or relied on as legal or professional advice.