First home stamp duty concessions available in the various states in Australia. Each individual Australian state, New South Wales, Victoria, Queensland, South Australia, Western Australia, the Northern Territory, the Australian Capital Territory and Tasmania, is responsible for levying stamp duty on transactions completed in their jurisdiction. For home or land buyers, each state has a different stamp duty that is levied against the purchase price of the property. As an incentive for first time buyers, each state has concessions or reductions in the stamp duty required for purchases. These concessions differ depending on the state involved and some concessions are time limited or change frequently. So as to not be surprised by the amount of the stamp duty to be paid against a new home or property purchase, buyers should contact the individual state for stamp duty levies and any available concessions for first time home buyers. Some stamp duty concession schemes are standard and rarely, if ever, change for new home buyers.
New South Wales:
New South Wales offers eligible first time home buyers an exemption from the stamp duty for purchases of homes valued up to $500,000. First time buyers who will be purchasing vacant land to build upon can be exempted for purchases up to $300,000. For those homes priced between $500,000 and $600,000, there is a sliding scale for concessions on the stamp duty. Vacant land concessions are available on a sliding scale for purchases totalling between $300,000 and $450,000. Occasionally, New South Wales will offer a New Home Buyers Supplement. There was, until recently, also a potential 50% reduction in stamp duty for new home buyers who were not first time purchasers, but were buying a new home in New South Wales.
Buyers should visit the official site, www.osr.nsw.gov.au, for eligibility and concession details.
First time home purchasers in Victoria may qualify for the $7,000 First Time Home Buyers Grant, along with the First Home Bonus. In order to qualify for the bonus, the purchase price of the new home cannot exceed $600,000 for contracts completed between 1 July 2009 and 30 June 2011. The First Home Bonus amount, through 30 June 2011, is $13,000 and is only available for new homes. For new homes purchased in one of approximately two dozen regional municipalities of Victoria, there is an additional $6,500 bonus available for first time new home buyers. This is paid to the purchaser in addition to the $13,000 First Home Bonus. As of 6 May 2008, there has been an increase in the concession for the Principal Place of Residence Transfer Stamp Duty. This concession scheme is available under limited conditions: purchase price is valued between $130,000 and $500,000, applicants use the property as their primary residence within 12 months of purchase, the applicants reside primarily on the property for at least 12 months and the contract is completed on or after 6 May 2008.
For eligibility for first time buyers and new home purchases, buyers should visit www.sro.vic.gov.au.
Queensland offers limited concessions for first time home buyers and first time purchasers of vacant land in the state. After 1 September 2008, those first time buyers who are eligible for concessions to exempt their purchase from the transfer stamp duty. This is available for established homes valued up to $500,000, with concessions available on a sliding scale for home valued between $500,000 and $549,999. First time buyers who will be purchasing vacant land in Queensland are eligible for a full exemption from the stamp duty for land purchases up to $250,000. A sliding scale of concessions is available for land purchases valued between $250,000 and $399,999.
First time buyers should visit www.osr.qld.gov.au for full eligibility and concession details.
South Australia first time home buyers may be eligible for the First Time Home Buyer’s Grant of up to $4,000. This grant is available for homes with values up to $400,000, with an incremental reduction in the grant amount for homes valued in excess of $400,000. The grant reduces by $8 for every $100 in value over the limit amount. The current First Home Buyer’s Grant, effective as of 5 June 2008, replaces the original Stamp Duty First Home Concession scheme.
For details and eligibility requirements, purchasers should visit www.revenuesa.sa.gov.au.
For first time home buyers in Western Australia, there is a scheme in place to exempt purchases of homes up to $500,000. Exemption is also available for vacant land purchases by first time buyers, with a limit on land value of $300,000. Alternately, partial exemption is available for homes valued $500,000 to $600,000 and land purchases valued between $300,000 and $400,000.
Full eligibility and concession details are available at www.dtf.wa.gov.au.
First time home buyers looking to purchase a home or land in the Northern Territory must not already own a house or land in that state. As in Victoria, purchasers who are not first time buyers are eligible for rebates if they are purchasing a primary place of residence. As of 4 May 2010, first time buyers are eligible for a concession of up to $26,730 for a new home or vacant land. The value of the new home must not exceed $750,000 and the value of the vacant land must not exceed $385,000.
For complete details and a calculator to determine the rebate amount available for a purchase, visit www.nt.gov.au/ntt/revenue/home_incentives.shtml.
Australian Capital Territory:
To meet the threshold for duty concessions in the Australian Capital Territory, first time home buyers must meet an income eligibility scale. The maximum combined total income for a purchaser must not exceed $120,000 annually, with the maximum amount increasing by $3,330 annually for each additional dependent child in the household. The total maximum income limit is $136,650. All purchases must be owner-occupied properties, with the owner in residence for a minimum of 6 months. The concessions scheme for purchases is updated every six months, to maintain accuracy. For purchases made 1 July 2010 through 31 December 2010, the concession for new home purchases is stamp duty of $20 for homes valued up to $360,000. For homes valued $360,000 to $445,000, the duty is $20 plus $20.55 per $100 over $360,000. Homes valued over $445,000 are not eligible for concessions. Vacant land purchases are eligible for similar concessions, through a value of $246,100, with the additional duty charge of $16.10 for each $100 over $246,100.
For full eligibility details and concessions table, visit www.revenue.act.gov.au.
In Tasmania, first time home buyers are eligible for a stamp duty concession of up to $4,000. This is only available for homes in value up to $350,000.
For details and scheme eligibility requirements, purchasers should visit www.sro.tas.gov.au.