The NSW first home buyers July 1 countdown

When does the duty exemption for NSW first home buyers apply?

The exemption for first home buyers will apply to contracts executed on or after 1 July 2017 for properties up to $650,000.

For properties valued between $650,000 and $800,000, duty concessions will apply.

Are there any changes for vacant land?

There are no changes to the cap for vacant land.

Does this apply only to new homes?

No, the exemption applies to new and existing homes purchased by first home buyers.

Does the 1 July 2017 date refer to the date the contracts were exchanged or settled?

The 1 July 2017 date refers to the date the contracts were exchanged.

Does a first home purchase refer to a first investment home purchase or the first owner-occupied home purchase?

First home purchase refers to the first home you purchase which you must occupy for a continuous period of 6 months, commencing within 12 months of settlement.

I have just settled, what can I do to get the benefits?

If you settled before 1 July 2017, you are only entitled to the benefits that were available at that time. Please check our website for more information.

Can I rescind the contract and enter into a new contract after 1 July 2017 and get the new benefits?

As your contract is already executed, you are liable to pay duty. If you rescind and enter into the contract for the same property after 1 July 2017 you will not be eligible for the new benefits.

My client has just exchanged contracts and is in the cooling off period. Can we rescind under the cooling off provisions and re-exchange later?

As your contract is already executed, you are liable to pay duty. If you rescind and enter into the contract for the same property after 1 July 2017 you will not be eligible for the new benefits.

My contract is dated before 1 July 2017. Are these changes retrospective?

No, the changes to the First Home Buyers Assistance scheme are not retrospective.

Does this mean yet another form? Will we need to complete another Declaration or a Statutory Declaration?

No additional forms are anticipated at this stage. However some existing forms will need to be modified and in the case of the new scheme the old form will be replaced with a new one.

If the parties entered into a Put & Call option before 30 June 2017 to be exercised after 30 June 2017, would the purchaser be able to claim the exemption (or reduction as applicable) or would the Option be the determining date?

If the exercise of the option occurs on or after 1 July 2017, you will be able to claim the new exemption or reduction.