Approved Shared Equity Schemes

Preamble

Section 281 of the Duties Act 1997 (“the Act”) provides a framework for a shared equity scheme to be approved by the Chief Commissioner of State Revenue.

When a scheme is approved, the Home Buyer under the scheme will, in effect, be treated as if they had purchased the whole property for the purposes of;

• the First Home Buyers Scheme under the Act, and
• The First Home Owners Grant under the First Home Owner Grant and Shared Equity Act 2000, and
• The principal place of residence exemption under the Land Tax Management Act 1956.

When a property is acquired under an approved scheme, duty on the purchase is calculated on the dutiable value of the whole of the property, subject to any exemptions/concessions that may be available under the Act.

Section 65(25) of the Act provides an exemption from duty where the Home Buyer under the scheme increases their ownership interest.

The ruling also outlines the DA 002: Treasurer's Guidelines for approval of shared equity schemes currently approved by the Treasurer.

This ruling explains:

• the process for requesting the approval of a particular shared equity scheme pursuant to section 281(1) of the Act; and
• the process for requesting a particular person be prescribed by regulation as an approved equity partner pursuant to section 281(4)(c) of the Act.

All legislative references are to the Act unless specified otherwise.

Background

Section 281 of the Act provides:

• that the Chief Commissioner may approve a shared equity scheme
• what a shared equity scheme is
• that the scheme only applies where the equity partner is an approved equity partner
• who an approved equity partner is
• for the Treasurer to issue guidelines for the approval of shared equity schemes that the Chief Commissioner is to comply with.

The Treasurer has published guidelines (sl-2025-184) which set out the criteria under which the Chief Commissioner may approve a shared equity scheme (Treasurer’s Guidelines).

The terms Home Buyer, Scheme Agreement and Equity Partner have the same meaning as in the Treasurer’s Guidelines.

How to request approval of a shared equity scheme

Requests should be in writing, addressed to the Chief Commissioner of State Revenue and sent by email to private.ruling@revenue.nsw.gov.au.

Where the equity partner is the New South Wales Land and Housing Corporation the request should include the following information (as set out in the Treasurer’s guidelines):

Where the equity partner is a registered community housing provider within the meaning of Part 3 of the Community Housing Providers (Adoption of National Law) Act 2012 the request should include the following information (as set out in the Treasurer’s guidelines):

Where the equity partner is any other person seeking to be prescribed by the Regulations as an approved equity partner for the purposes of section 281 of the Act*:

To expediate the approval process, provide the details requested in A to E in the table below when requesting approval.

*When lodging the request with Revenue NSW, you acknowledge that the information provided will be reviewed by the Chief Commissioner of State Revenue or a delegate before it is sent to the Minister for Finance. The Minister will then consider whether or not to recommend to the Governor that a regulation be made to prescribe the person as an approved equity partner.

The request should be:

• duly signed by an appropriate officer; or
• accompanied by a written and duly signed acknowledgement from the person authorising the making of the request and confirming the accuracy of the information contained in it, if made by a third party, agent or representative of the person seeking to be prescribed.

Where the equity partner is a person who has been prescribed by the Regulations as an approved equity partner the request should include the following information (as set out in the Treasurer’s guidelines):

Any queries regarding the scheme should be sent to private.ruling@revenue.nsw.gov.au.