A number of changes were announced on 28 April 2013 relating to state taxes and grants for 2013/14. The changes effective from 1 July 2013 relate to:
- First Home Owners Grant Incentive
- First Home Buyer Duty Reduction
- New Stamp Duty Reduction Forms
The First Home Owners Grant contracts entered prior to 1 July 2013
Eligible first time home buyers can apply to receive the $7,000 First Home Owners Grant (FHOG) if a contract was entered to purchase a dwelling prior to 1 July 2013. (Please note, where you have previously purchased your first property which was an investment and not used as your main residence, you may still be eligible for the FHOG.)
Settlement prior to 1 July 2013 – If settlement occurs prior to 1 July 2013 and the purchase price is below $600,000, a first time home buyer will be eligible to receive a 30% discount on stamp duty (along with the primary residence concession if the purchase price is below $550,000 which is to be completed under the same form). To apply for this, you must complete the State Revenue Office’s (SRO) Form 53C. As part of Provey Conveyancing’s service to its clients, Provey Conveyancing on its clients’ behalf all applicable stamp duty concessions and reductions.
Settlement after 1 July 2013 – First time home buyers of property below $600,000 and settlement occurring on or after 1 July 2013 will attract a 40% discount on stamp duty (and also the PPR concession where the purchase price is below $550,000). Purchasers must complete SRO Form 61. A UIN number is a number given to applicants of the FHOG. Form 53C can still be used if you have the UIN number.
The First Home Owners Grant contracts entered into on or after 1 July 2013
Existing dwellings – There will be no grant for purchases of existing real estate. In other words, if you purchase a pre-existing second hand home, the grant is completely abolished.
New dwellings – From 1 July 2013 a $10,000 first home owners grant has been introduced for purchasers of newly constructed homes, purchases of off the plan apartments, units and townhouses, house and land packages, etc with a total project or purchase value of $750,000 or less.
First Home Buyer Duty Reduction
Settlements prior to 1 July 2013 – Eligible first time home buyers are entitled to receive a 30% reduction on stamp duty by completing SRO Form 53C.
Settlements on or after to 1 July 2013 – Eligible first time home buyers are entitled to receive a 40% reduction on stamp duty by completing SRO Form 61.
Form 61 – This form incorporates the application for the Principal Place of Residence Concession (PPR) and the First Home Buyer Duty Reduction (FHBDR). A UIN number is not required to be inserted into Form 61 if purchasing an established dwelling where the contract date is on or after 1 July 2013 in order to receive the FHBDR. Form 53C can still be used if you have the UIN number.
Form 53D – This form will be used by those who wish to apply for the PPR concession only. This form has been trimmed down a great deal as it no longer incorporates the FHBDR which can be applied for using Form 61.