First Home - New Home Scheme
The First Home—New Home scheme provides exemptions or concessions on transfer duty for people who are buying their first home in NSW. This includes buying vacant land on which they intend to build their first home.
The First Home—New Home scheme provides eligible purchasers with full stamp duty exemptions on transfer duty on new homes valued up to $550,000 from 1st July 2012 (or $500,000 for properties purchased prior to 1st July 2012). Partial concessions on transfer duty are available for new homes valued between $550,000 and $650,000 from 1 July 2012. Prior to 1st July 2012 the partial concession was available for new homes valued between $500,000 and $600,000.
As of 1st July 2012 eligible purchasers buying a vacant block of residential land to build their home on will pay no stamp duty on vacant land valued up to $350,000 ($300,000 prior to 1 July 2012) and will receive a concession on duty for vacant land valued between $350,000 and $450,000.
NSW New Home Grant Scheme
Commencing 1 July 2012, a $5000 grant will be available to buyers of new homes, whether off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
A purchaser under the scheme can be any entity, including a natural person, a company or a trustee of a trust and is available to investors as well as owner occupiers. The payment of the grant will be administered by way of applying the amount of the new home grant as a credit against liability for duty on the agreement for sale or transfer. However, if the total amount of duty is paid, or there is a balance of grant owing, a payment will be issued by cheque upon completion of the purchase (i.e. the registration of the change of title).
First Home Owners Grant Changes
From 1 October 2012, the $7 000 First Home Owner Grant will be replaced by the $15 000 First Home Owner Grant (New Homes) Scheme.
First home owners who purchase or build a new home where the eligible transaction commencement date (contract date) is on or after 1 October 2012 will be eligible for the $15 000 grant. The grant will reduce to $10,000 on 1 January 2014 for eligible transactions which have a commencement date (contract date) on or after 1 January 2014.
The $7 000 first home owner grant for established properties ends on 30 September 2012 and will not be available where the eligible transaction commencement date (contract date) is on or after 1 October 2012.
For more detailed information on all of these benefits please visit