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What are the criteria for eligibility?
What is the value to which the exemption or concession applies?
The value limits
First home owner with family exemption/concession vs the First Home Bonus - which is worth more?
The principal place of residence concession incorporated into the first home owner with family concession
Under the Duties Act 2000, a transfer of land attracts duty based on the dutiable value of the land unless an exemption applies. If you are a first home owner with family and you purchased land and home on or after 1 January 2006, you may be entitled to an exemption or concession from duty.
What are the criteria for eligibility?
To qualify, you must:
- be purchasing the house and land for market value and intend to live in the home as your principal place of residence;
- have a dependant child at the date of –
- the contract of sale or within 11 months of that date if there was a home on the land when the contract of sale was entered into
- the building contract or the date on which building commenced (whichever is the earlier), or within 11 months of that date if there was no home on the land when the contract was entered into.
- Not have previously owned a home anywhere in Australia which was used as your principal place of residence.
If you purchased a home with your spouse/partner, the exemption or concession is available only if each of you satisfies the eligibility criteria.
What is the value to which the exemption or concession applies?
If there was a home on the land at the time of the contract, the relevant value is the purchase price or the market value of the land and home (whichever is the greater).
Where there was no home on the land at the time of the contract, and a home is built on the land before the transfer (or within three years after the transfer), the relevant value is the total of the purchase price or the market value of the land (whichever is the greater) and the cost of building the home. The exemption or concession will be provided only upon completion of the home. If you have paid duty on the transfer, you will receive a refund if the home is constructed within the three year period.
Example
John and Anne entered into a contract on 17 March 2006 to purchase a block of land for $70,000 which was transferred to them on 18 August 2006. On 27 September 2006, they signed a building contract to their home on the land. The house was completed on 23 June 2007 and they moved in shortly after that. The cost of construction was $129,000.
John and Anne are eligible first home owners. The value to which the first home owner exemption or concession applies is $199,000 ($70,000 for the land + $129,000 for the cost of construction). John and Anne will be entitled to a concession from duty.
The value limits
Contract Date |
Full exemption |
Concession |
No exemption |
Form |
On or after 1 January 2006 |
Not more than $150,000 |
More than $150,000 but less than $200,000 |
$200,000 or more |
SRO Duties Act Form 7C |
> Summary of how the concession is calculated for contracts of sale entered into on or after 1 January 2007.
> Summary of how the concession is calculated for contracts of sale entered into on or after 1 January 2006 and before 1 January 2007 .
First home owner with family exemption/concession vs the First Home Bonus - which is worth more?
If you qualify for the First Home Owner Grant you may also be eligible for the First Home Bonus (the bonus).
If you qualify for both the bonus and the first home owner with family exemption or concession you have the choice of receiving one or the other. You cannot receive both.
If you qualify for the exemption or concession, but have already received the bonus, you may make a written submission to receive the exemption / concession less the relevant bonus amount.
If you choose to receive the bonus, you will not receive the:
- pensioner exemption or concession,
- first home owner with family exemption or concession or
- duty concession for a principal place of residence.
Depending on the value of the property, it may be more advantageous to receive the bonus than the exemption or concession. As a guide, we have made the following calculations on the basis that a house exists at the time of transfer.
Contract date |
Amount of Bonus |
Value of purchase |
Which is worth more? |
From 1 January 2007 to 30 June 2009 |
$5000 for new residential premises |
Any value to less than $200,000 |
First Home Bonus |
$3,000 for established homes |
$0 to $123,790
and
$165,198 to less than $200,000 |
First Home Bonus |
$123,811 to $165,197 |
First Home Owner with family exemption or concession |
$123,791 to $123,810 |
First Home Owner with family exemption is equal to First Home Bonus |
From 1 January 2006 to 31 December 2006 |
$3,000 |
$0 to $122,324
and
$165,812 to less than $200,000 |
First Home Bonus |
$122,342 to $167,811 |
First Home Owner with family exemption or concession |
$122,325 to $122,341 |
First Home Owner with family exemption is equal to First Home Bonus |
You are encouraged to seek advice from a qualified adviser as to which option is better for you. The above figures may be slightly different for an eligible first home owner who purchased a vacant block and built a house on it within three years of the transfer.
The principal place of residence concession incorporated into the first home owner with family concession
If you are entitled to the first home owner with family concession and you entered into a contract to purchase your home on or after 1 January 2007, you will automatically benefit from the duty concession for a principal place of residence.
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