Attention investors! And attention first time buyers of new homes! ….you may be eligible for new government grants.
$5000 – new home grant
From 1 July 2012, a $5000 grant is available to buyers of new homes with a value of up to $650,000, and to buyers of vacant land with a value of up to $450,000 (on which a new home will be built). A new home is a home which has not been previously occupied or sold as a place of residence and includes a home that is substantially renovated, or a home that is built to replace demolished premises.
Buyers can be individuals, companies or a trustee and there is no requirement for the buyer to live in the home. Further, there is no restriction on the amount of times a buyer can apply for the grant, and there are no income or assets tests to qualify. So investors, check it out!
Note that in regards to vacant land purchases and construction of a home; construction must begin by way of laying foundations within 6 months of the completion date of the purchase. (There is no time limit on the completion of the construction.)
All applications for the $5,000 grant must be made within 3 months of the purchase.
$15,000 – first home owner grant (new homes)
From 1 October 2012 a $15,000 grant is available to first home buyers of new homes, or first home buyers who enter into a home building contract. The price of the new home needs to be under $650,000.
For the $15,000 grant to apply, each buyer must be a natural person, not a company or trust, and must be a permanent resident or Australian citizen, at least 18 years of age and have not owned a residential property in any state or territory of Australia previously. At least one buyer must occupy the home as their principal place of residence for a continuous period of six months commencing within 12 months from the date they are registered on title, or the construction completion date.
Please note the changes to the current first home owner grant of $7,000.
For more information, please contact Davina Borrow-Jones – Senior Associate, or Paul Tonkin, Partner.
There is also the regional relocation grant which I will write on next time.
New Home Grant Scheme.
See section 195.1and s 40.75 of A New Tax System (Goods and Services) Act 1999 (Cth)
To ensure your eligibility, make sure you see a solicitor to discuss your particular circumstances. We are able to assist in this regard.
First Home Owner Grant (New Homes).
The applicant and/ their spouse/ de facto cannot have previously owned a residential property jointly, separately or with some other person in Australia and occupied that for a continuous period of at least 6 months, and cannot previously have received a first home owner grant. Again, to ensure your eligibility, make sure you see a solicitor to discuss your particular circumstances. We are able to assist in this regard.
The current first home owner grant of $7,000 for first home buyers of existing homes is abolished as at 31 September 2012.