Changes to Stamp Duties – First Home Plus

Recently the media has highlighted and speculated on the changes to property stamp duties, as well as the various taxes surrounding home ownership. In this article I touch on the basics surrounding one portion of these changes. If you are in any doubt as to how these changes effect you I strongly suggest you speak to your accountant or contact the Office of State Revenue.

There is currently a grant available from the Federal Government aimed at assisting those trying to buy their first home, called the First Home Owners Grant (FHOG). What many are not aware of is that there is also assistance in the form of a stamp duty rebate scheme by the NSW State Government called First Home Plus (FH+). The FH+ provides exemptions or discounts on transfer stamp duties and on mortgage stamp duties.

From the 4th of April 2004 the purchase price limits have increased to take into account market prices. Properties valued up to $500,000 are now duty free and there are discounts available for homes between $500,000 and $600,000. For more specific figures, please view our stamp duty calculator.

If a first home buyer is purchasing a vacant block of land they are eligible for a benefit, with no stamp duties payable on land valued up to $300,000 and discounts on the stamp duties payable on land between $300,000 and $450,000.

Generally you are not eligible for the scheme if you have received benefits in the past. However as of the 1st of July 2001 these benefits may still apply if you share an application with someone who has not received the benefits and you are included on the loan solely to assist that person obtain finance.

You qualify for assistance through First Home Plus if at least one of the purchasers has never owned an owner occupied residential property in any state or territory in Australia.

If you would like to find out more about the changes to First Home Plus, or would like to apply for First Home Plus you can contact The Office of State Revenue on 1300 139 814 or go to their website at www.osr.nsw.gov.au. Please note these details are for NSW residents only, however South Australia has recently introduced a similar scheme. Please contact your local state office if you are outside NSW.