First Home Buyers Incentives - what you need to know

First Home Buyers Incentives - what you need to know

With property prices rising across many of Australia’s property markets, it is becoming increasingly difficult for some first home buyers to get their foot on the property ladder.

Thankfully however, some of the state governments have come to the fore, offering first home buyers various incentives to help them achieve their goals of property ownership sooner rather than later.

In this article, we offer a breakdown of the various incentives on offer from each of the states. In addition, we look at the incentives being offered at a national level by the Federal Government.

Federal Government

When delivering the national Budget in May 2017, Treasurer Scott Morrison unveiled the Federal Government’s plans to introduce a First Home Super Saver Scheme. Under the terms of the Scheme, potential first home buyers can put up to $15,000 a year into their superannuation account (pre-tax) if they are saving for a deposit. You can only do it for two years so the maximum you can save is $30,000. Withdrawals will then be taxed at marginal tax rates less a 30 per cent offset and allowed from 1 July 2018.

Australian Capital Territory

  • First Home Buyer Grant: $7,000
  • New or Established Properties: New/substantially renovated
  • Max. Value of Property: $750,000

The ACT provides first home buyers with a $7,000 grant towards the purchase of their property. The property must be newly built or substantially renovated and valued at a maximum of $750,000 in order to qualify for the grant.

New South Wales

  • First Home Buyer Grant: $10,000
  • New or Established Properties: New
  • Max. Value of Property: $750,000

First Home Buyers who build or buy a new dwelling may qualify for a grant of up to $10,000. The NSW State government qualifies a new home as a home that has not been previously occupied or sold as a place of residence and includes a home that has been substantially renovated or, a home built to replace demolished premises.

In addition, first home buyers purchasing new or established homes up to the value of $650,000 will no longer have to pay stamp duty. FHB who buy homes up to the value of $800,000 will receive a concession on their stamp duty.

Queensland

  • First Home Buyer Grant: $15,000 - $20,000
  • New or Established Properties: New
  • Max. Value of Property: $750,000

In Queensland, you may be eligible to claim a concession on the cost of transfer of duty. If you meet certain eligibility requirements, the duty may be scraped altogether. In order to qualify, you must never have held an interest in residential land anywhere in the world, never claimed the first home vacant land concession, and the home you purchase must be valued at less than $550,000.

If you’re buying or building a new home you may also be eligible for the Queensland First Home Owner’s Grant.

Depending on the date of your contract, you could be eligible for $15,000-$20,000 towards purchasing or building a new home to the value of $750,000.

Victoria

  • First Home Buyer Grant: $10,000 - $20,000
  • New or Established Properties: New
  • Max. Value of Property: $750,000

First home buyers purchasing a new property up to the value of $750,000 may be eligible for a $10,000 First Home Owners’ Grant.

Those purchasing and/or building new homes in regional Victoria up to the value of $750,000 may be eligible for a $20,000 grant.

If you are a first home owner buying an off the plan you may be entitled to a concession. The concession means that you pay duty on the value of the property and construction at the time of the contract date. Normally, construction won't have started or hasn't yet been completed at the date of the contract and so the duty paid is on a lesser amount. First home owners that intend to use their off the plan for investment purposes may still be eligible. From 1 July 2017 only first home buyers who occupy the property as their principal place of residence will be eligible for a concession.

The Victorian state government will also abolish stamp duty for first home buyers purchasing a home with a dutiable value of $600,000 or less. In addition, those purchasing a property worth between $600,000 and $750,000 will receive some form of stamp duty concession.

Tasmania

  • First Home Buyer Grant: $10,000 - $20,000
  • New or Established Properties: New
  • Max. Value of Property: No max

The Tasmanian Government has extended the $20 000 First Home Owner Grant for another year. Any first home buyers who buy or build a new home between now and 1 July 2018, may be eligible for the grant.

South Australia

  • First Home Buyer Grant: $15,000
  • New or Established Properties: New
  • Max. Value of Property: $575,000

In South Australia, first home buyers purchasing new homes may be eligible for a grant of up to $15,000. If you purchase an off-the-plan apartment that meets the required criteria, you may also be eligible for the off-the-plan concession on stamp duty totalling a saving of up to $21,330.

Western Australia

  • First Home Buyer Grant: $10,000 - $15,000
  • New or Established Properties: New/substantially renovated
  • Max. Value of Property: $750,000 - $1,000,000

Western Australia first home buyers purchasing or building a new home may be eligible for a $10,000 grant. The maximum amount a first home buyer can spend on their property in order to receive the grant varies from area to area.

Northern Territory

  • First Home Buyer Grant: $26,000
  • New or Established Properties: New
  • Max. Value of Property: No max

First home buyers who purchase or build a new home may be eligible to receive a $26,000 grant. As of 1 January 2015, there is no threshold on the value of the home.

For further information on eligibility requirements on any of the above please contact your state or territory, or, speak to your broker.

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