Agreements or transfers on or before 30 June 2014
What are the eligibity requirements for the grant?
The following requirements must be met to be eligible for the grant:
An agreement or transfer for the purchase of land:
that is the site of a new home that is complete and ready for occupation (new home purchase)
intended to be used as the site of a new home, which is to be built before completion of the agreement (off the plan purchase)
that is intended to be used as the site of a new home and which is not an off the plan purchase (vacant land purchase). Construction of the home, by way of laying foundations, must commence within 26 weeks (or a longer period allowed by the Chief Commissioner) of completion of the purchase. However, there is no limit on the time of construction.
Agreement or transfer of vacant land must be for the whole of the land. If the land is a parcel of land where two or more homes are to be built, the agreement or transfer must be for that part of the land which has exclusive occupancy.
Applications for the grant must be made within three months of the date of the first execution of the agreement or transfer when there is no preceding agreement.
The value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.
What transactions are not eligible for the grant?
The following transactions are not eligible for the grant:
A transfer made on or after 1 July 2012 that is in conformity with an agreement or transfer entered into prior to 1 July 2012.
- An agreement or transfer of a new home that replaces an agreement or transfer made before 1 July 2012 that was for substantially the same property.
An agreement or transfer of a new home or vacant land that is intended to be used or made available for use for any purpose other than that of a residential purpose, for example a commercial, industrial or professional purpose.
An agreement or transfer of an existing home to knock down and build a new home on the land.
An agreement or transfer that is eligible for a duty exemption under the First Home – New Home Scheme or a grant under the First Home Owner Grant Scheme.
- Where the payment of the grant has previously been approved on the land.
Who can apply for the grant?
You can be a natural person, a company or trustee of a trust.
The grant is available to investors as well as owner occupiers.
Foreign residents can apply for the grant but they would need to meet the requirement of the Foreign Investment Review Board regarding investment in Australia.
How is the grant paid?
The grant is paid as a credit against your liability for duty on the agreement or transfer.
If the duty payable is greater than $5,000, only the difference between the duty payable and the $5,000 grant is to be paid.
If the duty payable is less than $5,000, no duty is required to be paid and a payment of the difference between the grant and the duty payable will be paid by cheque.
If the total amount of duty payable (whether greater or less than $5,000) is paid, the $5,000 grant will be paid by Electronic Funds Transfer.
How do I complete a New Home Grant off the plan purchase?
The duty payable must be paid on completion of the agreement for sale, the assignment of the whole or any part of the purchaser's interest under the agreement for sale or by the due date specified on the Notice of Assessment, whichever first occurs.
To finalise the processing of a NSW New Home Grant off the plan purchase, you can lodge with us, process on Electronic Duties Return (EDR) prior to attending settlement or process at an approved settlement room.
For information, download the NSW New Home Grant scheme off the plan purchases factsheet.
How do I apply for the grant?
To apply for the grant, submit an Application for NSW New Home Grant form (ODA 072B) within three months of the date of the first execution of the agreement or transfer.
We may require documentary evidence from you to support your claim.
A separate application is required for each eligible agreement or transfer.
Can I receive the grant on another property?
Yes, there are no restrictions on the number of times you can apply for the grant provided it is for the purchase of another eligible property.
Only one grant will be issued per property. For example, if an off the plan home was purchased and the grant was paid but the home was later sold before completion, the new owners could not apply for the grant.
What is a home?
A home is a building (affixed to land) that:
may lawfully be used as a place of residence
is, in the Chief Commissioner’s opinion, a suitable building for use as a place of residence.
A suitable building for a place of residence includes a house, a unit or flat, a townhouse, a villa, or any other type of self-contained dwelling affixed to land (including a manufactured home as defined in the Local Government Act 1993), where evidence can be provided that the local council is satisfied that the dwelling can be occupied as a place of residence.
What is a new home?
A new home is a home that has not previously been occupied or sold as a place of residence, and includes substantially renovated homes.
What is a substantially renovated home?
A substantially renovated home is a home:
that is a new residential premises within the meaning of section 40-75(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999 (Cth)
that, as renovated, has not been previously occupied or sold as a place of residence.
Under the Act, ‘substantial rennovations’ of a building are defined as renovation in which all, or substantially all, of a building is removed or replaced. The rennovations may, but need not, involve the removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircase.