Changes To FHB State Government Grants And Duty Concessions
NSW and VIC state governments have announced changes to FHOG and duty concessions for contracts entered into on or after 1 July 2017, to support FHBs entering the market.
Please see the below for key changes:
1. FHOG changes (NSW, VIC and WA only): FHOG is processed by each State government office, and the revised FHOG will apply, should the customer meet eligibility requirements for contracts signed from 1 July 2017
2. FHB duty concessions and exemptions (NSW and VIC only): NSW and VIC have announced increases in duty concession/exemptions for eligible FHBs
NSW: The NSW State government will apply the revised concessions/exemptions as the title transfers are pre-stamped prior to settlement.
VIC: The FHOG has increase in regional areas from $10,000 to $20,000. Stamp duty concessions/exceptions have increased for eligible FHBs from 1 July 2017.
WA: The FHOG will reduce from $15,000k to $10,000 from 1 July 2017
Please see attached table that provides an overview of the FHB FHOG and duty exception changes.
3. OTP duty concessions/deferrals for Investors (NSW and VIC) will no longer apply and only be available for Owner Occupiers
NSW: NSW Government is abolishing the 12-month deferral of duty for residential off-the-plan purchases by investors. Buyers who are purchasing a home they plan to live in off-the-plan (owner occupiers) will still be entitled to a 12-month delay in the payment of stamp duty, deferring payment from 3 to 15 months after settlement
VIC: OTP concession will now only apply to buyers who occupy the property as their principal place of residence (PPR). This concession is no longer available for Investors from 1 July 2017.