First Home Buyers Assistance Scheme and First Home Owner Grant (New Home)
Breaking into the property market can be a stressful and costly exercise.
However, as a first home buyer, you may be eligible to apply for initiatives that can reduce financial pressure. These measures are current as of May 2022 and may change. More up to date information can be found on the Revenue NSW website.
FIRST HOME BUYER ASSISTANCE SCHEME (FHBAS)
The NSW Government introduced the FHBAS to reduce transfer duty costs associated with the purchase of property in NSW for eligible first home buyers. Eligible buyers under the scheme may be entitled to an exemption or reduction in transfer duty on their purchase.
What is transfer duty?
Transfer duty (formally known as Stamp Duty) is payable to Revenue NSW on the purchase of:
- Property (including holiday homes and investment properties);
- Vacant land or farming property;
- Commercial or industrial properties; or
- A business (that includes land).
The calculation of transfer duty is based on the higher value of the property’s sale price or current market value.
More information on the application and calculation of transfer duty can be found on the Revenue NSW website.
Am I eligible to apply for the FHBAS?
To be an eligible first home buyer under the FHBAS, you must:
- Be an individual over the age of 18;
- Be an Australian citizen or a permanent resident (if you are not, at least one person you are purchasing with must be an Australian citizen or a permanent resident); and
- You (or your spouse) must not have previously owned residential property in Australia or received an exemption or concession under the scheme.
If you meet the above criteria, you may be entitled to a reduced rate of transfer duty or be wholly exempt from its payment on your purchase of:
- An existing home;
- A new home; or
- Vacant land on which you intend to build a home.
Under the FHBAS, it is also a requirement that you (or one of the other first home buyers if there are multiple purchasers) move into the property within 12 months of the purchase and live there for an unbroken period of a minimum of six months.
To apply for the FHBAS, you must have already exchanged contracts for your purchase.
What will I be entitled to apply for under the FHBAS?
If you are eligible for the FHBAS, you may apply for a concessional rate of transfer duty or an exemption from the payment of transfer duty based on the property’s value.
You may apply for a full exemption from the payment of transfer duty when you:
- Purchase a new or existing home valued at less than $650,000.00; or
- Purchase vacant land valued at less than $350,000.00.
You may apply for a concessional rate of transfer duty when you:
- Purchase a new or existing home valued between $650,000.00 and $800,000.00 (the value of the property determines the concessional rate); or
- Purchase vacant land valued between $350,000.00 and $450,000.00.
We can assist you in lodging your application forms and supporting documents for the FHBAS. For more information on the FHABS please visit the Revenue NSW website.
FIRST HOME OWNER’S GRANT (NEW HOMES) (FHOG)
Revenue NSW manages the First Home Owner Grant (New Homes) scheme which offers eligible first home buyers a grant in the sum of $10,000.00 towards the purchase price of their property.
Am I eligible to apply for the FHOG?
To be eligible to apply for the FHOG you must be:
- An individual over the age of 18;
- An Australian citizen or a permanent resident (if you are not, at least one person you are purchasing with must be an Australian citizen or a permanent resident); and
- You (or your spouse) must not have previously owned residential property in Australia or received the FHOG.
If you meet these criteria, you may be entitled to the grant if you are buying or building your first home and the home:
- Is a new home that no one has previously lived in; and
- Is worth no more than $750,000.00.
To be eligible, you (or one of the other first home buyers if there are multiple purchasers) must also move into the property within 12 months of the purchase and live there for a continuous term of at least six months.
Applying for the FHOG
Typically, you will apply for the FHOG when you arrange finance for the purchase of your new home or the construction of your new home. The bank or financial institution which is providing your loan must be an approved agent.
If you have already completed the purchase of your new home or the construction process to build your new home, you may still be eligible to lodge your application for the FHOG.
More information on the eligibility requirements under the FHOG and details regarding the application process can be found on the Revenue NSW website.
