State-by-state guide to first-home buyer grants as SA offers $23,500 new home carrot

State-by-state guide to first-home buyer grants as SA offers $23,500 new home carrot
State-by-state guide to first-home buyer grants as SA offers $23,500 new home carrot

South Australian first-home buyers have the chance to secure $23,500 from the state government, provided they build a new home.

The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into on or after October 15 and up to a value of $575,000, plus a further $8,500 housing construction grant (HCG). The housing construction grant replaces the $8,000 first-home bonus grant.

The HCG is available to all builders of new homes for properties valued up to $400,000, phasing out for properties valued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive.

Concessions could rise by $21, 330 if first-home buyers buy an apartment off the plan in the Adelaide CBD. This part of a new stamp duty concession scheme available on the transfer of a new CBD apartment or a "substantially refurbished apartment" for a contract entered into from May 31, 2012, to June 30, 2014, capped at stamp duty payable on a $500,000 apartment.

The reforms were announced by South Australian Premier Jay Weatherill and Treasurer Jack Snelling, who said they were “unashamedly about trying to kick start investment in new-built homes”.

In the last financial year, 8545 new homes were approved in SA, down from 12,560 in 2009-10.

Here’s a run-down of what’s available in each state:

NSW

A first-home buyer who purchases a $550,000 new home will get $35,240 in assistance.

This comprises a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000. The grant is available until December 31, 2013, reducing to $10,000 from January 1, 2014.

Non-first-home buyers who buy a new home are eligible for $5,000 whether the new home is off the plan or newly built with a value up to $650,000, The $5,000 grant is also available to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.

First-home owners are also eligible for a maximum stamp duty saving of $20,240 for homes up to a value of $550,000 with duty concessions for new homes valued between $550,000 and $650,000. The transfer duty exemption cap on vacant land is $350,000, with duty concessions for vacant land valued between $350,000 and $450,000.

 


 

Queensland

A $15,000 first-home owner construction grant (FHOCG) is available. The FHOCG applies to new property bought or built at a value under $750,000.

First-home buyers also pay no duty on purchases up to $500,000, with a phasing-out rebate applicable for values up to $600,000. 

For non-first-home buyers, the Queensland government offers a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase. The buyer must occupy the home for a period of 12 months – an applicant may lose the concession if he sells or leases part or all of the home before moving in or within a year of moving in.

Victoria

A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000.

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.

WA

A $7,000 first-home owner grant remains in place for a newly constructed or established home. It does not apply to vacant land purchased to build a new home. The total value of the home must not exceed $750,000 if the property is located south of the 26th parallel of South Latitude, or $1 million if located north of the 26th parallel of South Latitude. First-home buyers eligible for the $7,000 grant pay no stamp duty on homes valued up to $500,000 and up to $300,000 for vacant land.

ACT

A $7,000 first-home owner grant remains in place for both existing and new homes where the price of the property or construction of the home does not exceed $750,000.

Tasmania

A $7,000 first-home owner grant remains in place for both existing and new homes, with no cap on the value.

Northern Territory

A $12,000 first home owner grant is available up to a maximum of $600,000 if the home is an established home in the urban area.

An urban area means all land located wholly within the boundaries of:

  • the Darwin, Palmerston or Litchfield municipalities;
  • Wagait Shire;
  • the Darwin Waterfront Precinct;
  • the “prescribed area” for the Darwin Rates Act.

Outside of urban areas, the grant amount is $25,000.

South Australia

South Australian first-home buy­ers buying off the plan have the chance to secure up to $23,500 from the state govern­ment, provided they buy or build a new home.

The $23,500 handout comprises a doubled first-home owner grant of $15,000 for contracts entered into up to a value of $575,000, plus a further $8,500 housing construction grant (HCG) available until June 30 2013.  

The HCG is available to all builders of new homes for properties valued up to $400,000, phasing out for properties val­ued up to $450,000 where contracts are entered into between October 15, 2012, and June 30, 2013, inclusive.

If you are purchasing a new or substantially refurbished apartment:

  • within the area of the Corporation of the City of Adelaide;
  • on any land within the area where the Bowden Redevelopment project (Bowden Village); or
  • on any land located within the area known as 45 Park, Gilberton;

you may be eligible for an off the plan stamp duty concession of up to $21 330 (capped at stamp duty payable on a $500 000 apartment), if your contract to purchase was entered into between 31 May 2012 and 30 June 2014. This concession is in addition to the first home owners grant.

If eligible, no stamp duty will be payable where the apartment has a market value of $500 000 or less. Where an apartment purchased has a market value greater than $500 000, you will be entitled to a stamp duty concession of $21 330. A calculator is available on the RevenueSA.sa.gov.ua website to determine the stamp duty payable and concession that could be applicable.

A partial concession will be available for contracts entered into between 1 July 2014 and 30 June 2016.

South Australian first-home buyers of established homes are entitled to a $5,000 first home owner grant expiring on June 30 2014.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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