First Home Owner with Family

Transfers of land attract duty based on the dutiable value of the land unless an exemption applies. If you are a first home owner with a family and you purchased your 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 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 satisfy the eligibility criteria.


What is the value to which the exemption or concession applies?

For first home owners who meet the eligibility criteria, a full exemption from duty is available where the total value of the home and land is not more than $150,000.

A concession from duty is available where the total value of the home and land is not more than $200,000.

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.

Please use our calculator to determine the duty payable (including the value of the concession) on your transaction.

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 build 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.


First home owner with family exemption/concession or 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 have elected to receive the First Home Bonus, you are not entitled to the first home buyer exemption/concession. Additionally if you elect to receive the Bonus for contracts entered into during the period on or after 1 January 2007 to 5 May 2008 you will not be eligible for the duty concession for a principal place of residence. Your duty liability will be calculated at the standard rate.

If you qualify for the first home owner with family 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.

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 July 2010 to 30 June 2011 $6,500 Regional Bonus plus $13,000 Bonus for new home Any value to less than $200,000 First Home Bonus
$13,000 Bonus for new home Any value to less than $200,000 First Home Bonus
No Bonus available for established homes Any value to less than $200,000 First Home Owner with family exemption or concession
From 1 July 2009 to 30 June 2010   $4500 Regional Bonus plus $11,000 for new home Any value to less than $200,000 First Home Bonus
$11,000 for new homes Any value to less than $200,000 First Home Bonus
$2,000 for established homes $0 to $93,730
and
$174,160 to less than $200,000		 First Home Bonus
$93,730 to $93,770 First Home Owner with family exemption is equal to First Home Bonus
$93,771 to $174,160 First Home Owner with family exemption or concession
From 6 May 2008 to 30 June 2009   $3000 Regional Bonus plus $5000 for new home Any value to less than $200,000 First Home Bonus
$5000 for new homes Any value to less than $200,000 First Home Bonus
$3,000 for established homes $0 to $132,590
and
$161,198 to less than $200,000		 First Home Bonus
$132,591 to $132,610 First Home Owner with family exemption is equal to First Home Bonus
$132,611 to $161,240 First Home Owner with family exemption or concession
$5,000 for new residential premises Any value to less than $200,000 First Home Bonus
From 1 January 2007 to 5 May 2008. $3000 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
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.


How do I apply for the exemption/concession?

 

This document was last reviewed on 5/05/2010
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