First Home Owner Grant – Altered arrangements
Date of commencement: 1 October 2012
From 1 October 2012, the First Home Owner Grant will only be payable on the following eligible transactions:
- a contract made on or after 1 October 2012 for the purchase of a new home in New South Wales, or
- a comprehensive home building contract made on or after 1 October 2012 by the owner of land in New south Wales, or by a person who will on completion of the contract be the owner of land in New South Wales to have a new home built on the land; or
- the building of a new home in New south Wales by an owner builder if the building work commences on or after 1 October, 2012.
A new home is a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home (further defined in the Act) and a home built to replace demolished premises (also further defined in the Act).
A contract made on or after 1 October, 2012 is not an eligible transaction if it replaces a contract made before 1 October 2012 and the replaced contract was for the purchase of the same home or was a comprehensive building contract to build the same or a substantially similar home. The contract would be taken to have commenced at the commencement date of the replaced contract.
First Home Owner grant cap
From 1 October 2012 the amount of the first home owner grant cap is $650 000, unless another amount is prescribed by the regulations.
Amount of Grant
The amount of the first home owner grant is:
- in the case of an eligible transaction with a commencement date on or after 1 October 2012 but before 1 January 2014 – $15 000 or
- in the case of an eligible transaction with a commencement date on or after 1 January 2014 - $10 000
Eligible transactions entered into prior to 1 October 2012 will be subject to the requirements of the Act as in force immediately before its amendment.
Up until 30 September 2012 a First Home Owner Grant of $7000.00 will continue to be payable on existing homes, new homes and building contracts. From 1 October 2012 onwards no First Home Owner grant will be payable in relation to existing homes that are not new homes.
If you have any questions or would like to comment in relation to the above matters, please do not hesitate to contact us.
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