Australia's housing market has long presented a significant challenge for first-time homebuyers. To alleviate the challenges faced by first home buyers due to rising property prices in Australia, the Labour government has recently announced changes to the First Home Buyer Assistance Scheme.
For more information regarding the First Home Buyer Assistance Scheme, please click here.
First Home Buyer Assistance Scheme (FHBAS)
The FHBAS provides eligible first home buyers with the opportunity to either apply for a concessional stamp duty rate or full exemption. If you are an eligible first home buyer under the Scheme then you are now potentially entitled to a further saving. The proposed changes which seek to increase the current thresholds are set to become operational from 1 July 2023.
The increased thresholds are as follows:
- First home purchases up to $800,000 are now exempt from stamp duty. This has increased from the previous threshold of $650,000.
- First home purchases from $800,000 to $1,000,000 will receive a concessional discount.
The thresholds for vacant land however remain the same being:
- Vacant land purchases up to $350,000 are exempt from stamp duty.
- Vacant land purchases from $350,000 to $450,000 will receive a concessional discount.
Eligibility
The eligibility requirements for the scheme remain the same, being that:
- the contract date must be on or after 1 July 2017;
- you must be an individual;
- you must be over 18;
- you or your partner, must never have owned or co-owned residential property in Australia;
- you or your partner, must never have received an exemption or concession under this scheme;
- at least one of the first home buyers must be an Australian citizen or permanent resident; and
- you must move into the property within 12 months of buying it.
The scheme now requires first home buyers to live in the property for a continuous period of 12 months rather than 6 months, and the 12 month occupancy must commence within 12 months of settlement.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
