Time running out for first-home bonuses and stamp duty concessions

Time running out for first-home bonuses and stamp duty concessions
Time running out for first-home bonuses and stamp duty concessions

There is less than a month to go until five state home owners’ grants and one state stamp duty concession come to an end.

Victoria

On June 30 Victoria will end two bonus schemes aimed at first-home buyers – the $13,000 first-home bonus, which has run for three years, and the $6,500 regional bonus, which has run for two years.

These schemes will not be replaced.

Instead the government will increase existing stamp duty concessions for first-home buyers, as announced in the Victorian state budget.

From January 1, 2013 the existing 20% stamp duty discount first-home buyers spending less than $600,000 on a house purchase will be increased to 30%.

The stamp duty discount will rise to 40% on January 1 2014 and to 50% on September 1 2014.

To qualify for the stamp duty discount, first-home buyers must also qualify for the federal $7,000 first-home owners’ grant.

ACT

In the ACT, the home buyer concession scheme (HBCS) will end on June 30. The scheme provides stamp duty concessions on homes worth up to $470,000 and vacant land up to $260,000 and to qualify applicants must satisfy a combined income test for one year prior to the date of the grant starting from $120,000 for applicants with no children and up to $136,650 for applicants with five or more children.

No new schemes were introduced in the May 2011-12 ACT budget.

 

NSW

The NSW government's home builders bonus, which provides full exemption on stamp duty for new homes where the value does not exceed $600,000 and also applies to vacant land up to $400,000, will end on June 30. The scheme is available to everyone, including investors, who purchase a new house or apartment. For homes already under construction, a partial stamp duty reduction of 25% is available up until June 30.

The NSW state budget was handed down on June 12 with changes announced affecting investors and first-home-buyers from July 1 and October 1. The changes create a conundrum for property investors.

South Australia

The first-home bonus grant of up to $8,000 available to first-home buyers who qualify for the federal $7,000 first-home owner grant will be abolished from July 1, 2013. The first-home owners’ grant is not being phased out.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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