New Home Grant Scheme for agreements or transfers entered into on or after 1 July 2014

Commenced 1 July 2014. Closed to new applications for agreements dated on or after 1 July 2017.
  • Applies to new homes not exceeding $650,000 in value.
  • Applies to vacant land not exceeding $450,000 in value.

About the NSW New Home Grant Scheme

The NSW New Home Grant Scheme was introduced to stimulate the construction of new homes in NSW. The scheme provides a grant of $5,000 towards the purchase of new homes, homes off the plan and vacant land on which a new home will be built.

For purchasers (including transferees) to be eligible to receive the grant, the value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.

The following types of agreement or transfer are eligible for the grant:

  1. A new home purchase. That is an agreement or transfer for the purchase of land that is the site of a new home that is complete and ready for occupation.

  2. An off the plan purchase. That is an agreement or transfer for the purchase of land intended to be used as the site of a new home, which is to be built before completion of the agreement.

  3. A vacant land purchase. That is an agreement or transfer for the purchase of vacant land that is intended to be used as the site of a new home and which is not an off the plan purchase.

Under the scheme the purchasers can be any entity, including natural persons, a company, or trustee of a trust. It is available for investors as well as owner occupiers.

Purchasers must be an Australian citizen, Australian resident or an Australian-owned body.

  1. Australian citizen has the same meaning as in the Australian Citizenship Act 2007 of the Commonwealth. You must provide a certified copy of your Australian Birth Certificate, Australian Passport or Australian Citizenship Certificate.

  2. Australian resident means:

    • the holder of a permanent visa within the meaning of section 30 of the Migration Act 1958 of the Commonwealth (you must provide a certified copy of your permanent resident visa) or

    • a New Zealand citizen who holds a special category visa within the meaning of section 32 of the Migration Act 1958 of the Commonwealth (you must provide a certified copy of your New Zealand passport).

      Note: For Australian citizens and residents evidence of change of name is required if the name on the document provided is different to the name on the agreement for sale or transfer. That is a link between former name and current name (e.g. Marriage Certificate or Change of name Certificate issued by the NSW Registry of Births, Deaths & Marriages).

  3. Australian–owned body is a corporation or body corporate that is at least 50% owned or controlled by persons who are Australian citizens or Australian residents.

Where a trustee is acquiring the land, at least 50% of the beneficial interest in the land must be held for the benefit of Australian citizens, Australian residents or Australian-owned bodies.

However, each purchaser is limited to 1 grant per financial year. If a purchaser receives a grant, for a transaction which occurred in a financial year, that purchaser will not be eligible for a further grant on another transaction in that financial year.

Where the grant has been approved for the purchase of a property, no further grant can be paid in respect of that property, unless that previously approved grant has been revoked.

There are no residency requirements, however for vacant land purchases, construction of the home by way of the laying of foundations must commence within 26 weeks of the completion of the purchase (or within a longer period allowed by the Chief Commissioner). There is no time limit on the completion of construction.

The grant will not be available for transactions that are eligible for a duty exemption/concession under the First Home—New Home Scheme, or a grant under the First Home Owner Grant Scheme (First Home Owner Grant (New Homes) Scheme from 1 October 2012).

The grant will not be available for the purchase of an existing home to knock down and build a new home on the land.

Eligibility requirements for transactions

  1. Agreements for sale or transfers of vacant land or a new home will be eligible for consideration under the scheme where they are entered into on or after 1 July 2012.

  2. 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.

  3. An agreement or transfer is eligible if it is for the acquisition of a new home that is complete and ready for occupation.

  4. For vacant land, construction  must commence with the laying of foundations within 26 weeks after the agreement or transfer is completed, or within any longer period allowed by the Chief Commissioner.

  5. The agreement or transfer must be for the whole of the land. If the land is a parcel of land on which 2 or more homes are built or being built, the agreement or transfer must be for that part of the land that is an exclusive occupancy.

Ineligible transactions

  1. A transfer made on or after 1 July 2012 that is in conformity with an agreement or transfer entered into prior to 1 July 2012 will not be eligible.

  2. An agreement or transfer of a new home is not eligible if it replaces an agreement or transfer made before 1 July 2012 that was for substantially the same property.

  3. An agreement 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 (e.g. for a commercial, industrial or professional purpose).

  4. An agreement or transfer that is eligible for a duty exemption concession under the First Home—New Home Scheme or a grant under the First Home Owner Grant Scheme, is not eligible for the grant.

Payment of the grant

The payment of the grant will be administered by way of applying the amount of the new home grant as a credit against liability for duty on the agreement or transfer.

Where the duty payable (including the duplicate and transfer) is greater than $5,000, only the difference between the duty payable and the $5,000 is required to be paid. Where the duty payable (including the duplicate and transfer) is less than $5,000, no duty is required to be paid and a payment of the difference between the $5,000 grant and the duty payable will be issued.

However, if the total amount of duty payable (whether greater or less than $5,000) is paid, the grant payment will be issued. Any payment will only be made upon completion of the purchase (i.e. the registration of the change of title).

Note: For agreements where a balance of grant is payable, the payment will be made payable to the purchasers on the agreement.

How to apply

Submit your grant application together with your agreement or transfer for stamping. Every purchaser and transferee must complete the application. A separate application is required for each eligible agreement or transfer.

We may require further documentary evidence to substantiate your claim for the grant.

False claims

There are substantial penalties for knowingly making false or misleading statements in connection with an application for the grant. We conduct investigations and compliance checks to ensure the grant is given only to those applicants who are entitled to receive it. We audit claims with current and historical data held by other State and Territory agencies and commercial organisations.

For more information about the new home grant scheme, contact us.

Phone
Calling from a mobile? Call 02 9685 2146
Or phone 1300 139 814*
8.30am - 5.00pm Monday to Friday
Email

Last updated: 5 March 2018