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The New South Wales (NSW) Treasurer, the Hon. Andrew Constance MP announced the following changes to State taxes, grants and levies as part of the 2014 State Budget.
These and other changes were introduced under the State Revenue and Other Legislation Amendment (Budget measures) Bill 2014.
Duty will be abolished from 1 July 2016 on:
The amendments also include anti-avoidance measures, to prevent the duty from being avoided in anticipation of the abolition date.
The amendments restrict eligibility for a grant under the New Home Grant Scheme to one grant per financial year. If a transferee has been paid a grant under the Scheme, for a transaction which occurred in a financial year, the transferee will not be eligible for a further grant on another transaction in that year.
The amendments restrict eligibility for a grant under the New Home Grant Scheme to transferees who are declared an Australian citizen, Australian Resident or Australian-owned body.
Australian citizen has the same meaning as in the Australian Citizenship Act 2007 of the Commonwealth.
Australian resident means: (i) the holder of a permanent visa within the meaning of section 30 of the Migration Act 1958 of the Commonwealth, or (ii) a New Zealand citizen who holds a special category visa within the meaning of section 32 of the Migration Act 1958 of the Commonwealth
Australian-owned body means a corporation or body corporate that is at least 50% owned or controlled by persons who are Australian citizens or Australian residents.
However, if a transferee is acquiring the land in a trustee capacity, the transferee is an Australian citizen, Australian resident or Australian-owned body only if at least 50% of the beneficial interest in the land is held for the benefit of Australian citizens, Australian residents or Australian-owned bodies.
The amendments also remove the time limit (which was previously 3 months) for making an application under the New Home Grant Scheme.
The amendments apply to agreements for sale or transfer entered into on or after 1 July 2014,and transfers that occur on or after 1 July 2014, other than transfers made in conformity with an agreement for sale or transfer entered into before 1 July 2014.
For more information, visit the New Home Grant page.
An agreement or transfer is eligible only if the transferee/s is/are declared Australian nationals. A transferee or purchaser is a declared Australian national if they are an Australian citizen, Australian resident or an Australian-owned body.
An Australian citizen is a person who:
An Australian resident is a person who:
An 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.
A trustee is entitled to the grant only if at least 50% of the beneficial interest in the land is held for the benefit of Australian citizens, Australian residents or Australian-owned bodies.
You should apply for the grant at the same time your agreement and transfer are lodged at Revenue NSW or processed through Electronic Duties Returns.
You should apply for the grant at the same time your agreement and transfer are lodged at Revenue NSW for stamping or processed through Electronic Duties Returns. There is no requirement to apply before this time.
Yes. However, a transferee or purchaser can only receive one grant for transactions that occur in the same financial year. For an agreement for sale or transfer, or a transfer in conformity with an agreement for sale or transfer, the transaction occurs on the date on which the agreement for sale is entered into. Where there is no agreement, the transaction occurs on the date on which the transfer occurs.
You would need to provide a certified copy of the following documents:
The amendments increase the first home owner grant cap from $650,000 to $750,000. This means that an eligible transaction that has a total value of up to $750,000 will qualify for the first home owner grant for new homes.
Yes. On and from 1 July 2017 the first home owner grant changed to include two transaction caps determined by the type of eligible transaction:
All eligible transactions entered into on 1 July 2014 to and including 30 June 2017, retains the first home owner grant cap is $750,000. This applies to contracts entered into on or after 1 July 2014, or for owner builders if the building work commences on or after 1 July 2014. The grant will only be available for properties with a total value not exceeding the cap amount.
No. There are no other changes.
For a contract for the purchase of a home, the total value is based on the greater of the following:
For a comprehensive home building contract, the total value is calculated by adding together:
For a building of a home by an owner builder, the total value is calculated by adding together:
The value of the relevant interest in the land on which the home is to be built is the greater of the following:
Yes. Eligibility is determined as at the commencement date of the contract. The First Home Owner Grant cap for new purchases was $750,000 in June 2017.
No. The cap of $600,000 would apply, so the grant would not be payable.
No. The $750,000 applies to the First Home Owner Grant (New Homes) scheme only.
The First Home Owner Grant (New Homes) provides a grant of $10,000 to help eligible first home buyers to purchase or build a new home.
It replaces the $15,000 First Home Owner Grant from 1 January 2016.
The grant of $10,000 applies to eligible transactions entered into on or after 1 January 2016.
The grant of $15,000 applies to eligible transactions entered into on or after 1 October 2012 and before 1 January 2016.
An eligible transaction is:
A new home is a home that has not been previously occupied or sold as a place of residence, and includes a home that is a substantially renovated home and a home built to replace demolished premises.
A home is substantially renovated if:
It will be necessary for the seller to indicate that each of these requirements have been satisfied to establish that new residential premises have been created through substantial renovations.
Under sec.195.1 of the A New Tax System (Goods and Services ) Act 1999 (Cth), 'substantial renovations' of a building are defined as renovations in which all, or substantially all, of a building is removed or replaced. The renovations may, but need not, involve the removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircases.
This definition requires consideration of what work has been done to the building since it was acquired by the person who is selling the renovated property to you. The renovations must have affected the building as a whole, and resulted in the removal or replacement of all, or substantially all, of the previous building. For renovations to have been substantial, they must have affected most of the rooms in the previous building. The renovation of only one part of a building without any work on the remaining parts of the building (for example, the renovation of only one bedroom in a four-bedroom house, would not have constituted substantial renovations). Similarly, the removal and replacement of a kitchen and bathroom with little else having been done to the building, apart from minor repair work, would not be substantial renovations.
There must have been a removal or replacement of all, or a substantial part, of the structural and/or non-structural components of the previous building.
Structural building work includes:
Non-structural building work includes:
Substantial renovations do not include cosmetic work such as painting, sanding floors, replacing light fittings, or replacing curtains and carpets. However, where structural and/or non-structural building work amounts to substantial renovations that have created new residential premises, any cosmetic work also undertaken will form part of the new residential premises.
Applications for a First Home Owner (New Homes) Grant on the basis that the applicant has purchased new residential premises that have been created through substantial renovations of a building will be considered on a case by case basis. In particular cases, the Chief Commissioner may require further evidence than the requirements set out above.
A home is a home built to replace demolished premises if:
Yes, effective from 1 July 2017, the First Home Owner Grant (New Home) is capped at $600,000 for the purchase of a new home and $750,000 for contracts to construct a new home or to owner build. Effective from 1 October 2012 the First Home Owner Grant (New Home) is capped at $650,000. Effective from 1 July 2014, the First Home Owner Grant (New Home) is capped at $750,000. The grant will only be available for properties with a total value not exceeding the cap amount.
For a contract of sale of a home, the total value is based on the greater of the following:
For a comprehensive home building contract, the total value is calculated by adding together:
For a building of a home by an owner builder, the total value is calculated by adding together:
The value of the relevant interest in the land on which the home is to be built is the greater of the following:
No, from 1 October 2012, the First Home Owner Grant will only be payable on the purchase of new homes.
The $7,000 First Home Owner Grant is still available on contracts for the purchase of existing homes entered into before 1 October 2012.
The Payroll Tax Rebate Scheme (Disability Employment) Act 2011 is repealed.
The amendments provide for the continuation of the Payroll Tax Rebate Scheme (Disability Employment) Act 2011 in respect employment that commenced before the repeal of the Act.