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NSW Housing Construction Acceleration Plan

The NSW Housing Contrustion Acceleration Plan (HCAP) ceased to apply for contracts entered into on or after 1 July 2010.

The HCAP was introduced to stimulate the construction of new homes by providing a reduction in duty on the purchase of new homes by people who are not first home buyers.

If you are buying a new home, you may be eligible for a reduction in the duty payable on the purchase. HCAP provides a purchaser of a new home with a value not exceeding $600,000 with a 50 per cent reduction in duty.

There is no limit on the number of new homes a person may purchase under HCAP.

Eligibility

A home is a building that may lawfully be used as a place of residence and is in the Chief Commissioner’s opinion, a suitable building for use as a place of residence. A new home is a home that has not previously been occupied or sold as a place of residence, and includes a substantially renovated home.

Agreements for sale or transfers of a new home will be eligible for consideration under HCAP where they are entered into on or after 1 July 2009 and before 1 June 2010. If an application is approved, the amount of duty chargeable on the agreement for sale or transfer is reduced by 50 per cent.

If an eligible agreement for sale or transfer is aggregated with other dutiable transactions, and treated as a single dutiable transaction, the 50 per cent reduction is to be applied only to the duty that would be chargeable (in the absence of aggregation) on the eligible agreement for sale or transfer

The agreement for sale or transfer must be for the whole of the land. If the land is a parcel of land on which two or more homes are built or being built, the agreement for sale or transfer must be for that part of the land that is an exclusive occupancy.

An agreement for sale or transfer is eligible if it is an agreement for sale or transfer for the acquisition of a new home that is complete and ready for occupation, or is an agreement for sale or transfer of land on which a new home is to be built before completion of the sale or transfer (an off-the-plan purchase).

An off-the-plan purchase will be eligible only if the agreement for sale states that it must be completed before 31 December 2011 or in any other case, the agreement for sale is completed before 31 December 2011. The Chief Commissioner does have the discretion to allow a later date for completion where the delay is caused by circumstances beyond the control of the parties.

Ineligible transactions

  • A transfer made on or after 1 July 2009 that is in conformity with an agreement for sale or transfer entered into prior to 1 July 2009 will not be eligible.

  • An agreement for sale or transfer of a new home is not eligible if it replaces an agreement for sale or transfer made before 1 July 2009 that was for substantially the same property.

  • An agreement for sale or transfer will not be eligible if the agreement for sale or transfer is eligible under the First Home Plus scheme or the transferee, or any of the transferees, is eligible for, or has been paid, a grant under the First Home Owner Grant Act 2000 in respect of the new home.

  • An agreement for sale or transfer will not be eligible if the new home or the land on which the new home is located, or is to be built, is intended to be used, or made available for use, for any purpose that is not ancillary to the use and occupation of the land for residential purposes (eg for a commercial, industrial or professional purpose).

Payment of duty

Duty is payable within three months of the date that the agreement for sale or transfer is first executed.

For an off-the-plan purchase, duty must be paid within three months of:

  • the completion of the agreement for sale, or

  • the assignment of the whole or any part of the purchasers’ interest under the agreement for sale, or

  • the expiration of 12 months after the date of the agreement for sale,

whichever occurs first.

How to apply

Submit your Housing Construction Acceleration Plan (HCAP) - Application for Reduction in Duty (ODA055) together with your agreement for sale or transfer for stamping. A separate application must be submitted for each transferee.

Where an application is for an off-the-plan purchase, Declaration for 'Off the Plan' Purchases form (ODA014) must be completed.

HCAP – homes example calculation

Purchase price ($) Usual duty ($) HCAP duty ($) Savings ($)
250,000 7,240 3,620 3,620
300,000 8,990 4,495 4,495
350,000 11,240 5,620 5,620
400,000 13,490 6,745 6,745
450,000 15,740 7,870 7,870
500,000 17,990 8,995 8,995
550,000 20,240 10,120 10,120
600,000 22,490 11,245 11,245
Last updated: 22 August 2017