Concessions for new home purchases extended beyond first home buyers

There has been extensive coverage in recent timesthe sale or transfer of land on which the new home
of the various bonuses and concessions that arewill be built before the completion of the sale or
available to first home buyers, for both newlytransfer, known as an off the plan purchase. There
constructed and existing properties. In NSW theseare further date restrictions that apply to off the
benefits include State and Federal Governmentplan agreements in order to determine eligibility.
grants as well as stamp duty concessions from theWhilst new units, new apartments and off the plan
State Government.agreements are eligible under HCAP some other
In an effort to further stimulate construction andagreements and situations are not. For example,
industry related business and employmentpurchasers who enter into a comprehensive home
opportunities the NSW Government has announcedbuilding contract are not eligible for the concession
that they are now introducing significant stamp dutyunder HCAP as according to the Duties Act 1997
concessions on the purchase of all new homes bythese types of contracts do not attract payable
those who are not first home buyers.duty. Similarly, owner/builders are also not eligible to
Under this new scheme which is entitled the NSWunder HCAP as they are not liable for duty under the
Housing Construction Acceleration Plan (HCAP) newDuties Act 1997 either. HCAP does also not apply to
home purchasers may be eligible for a 50 percentthe purchase of vacant land.
reduction in payable duty on properties that do notAdditional items to note in regards to eligibility criteria
exceed $600,000 in value.includes: there is no limit to the number of homes
A “home” is defined as a building that maythat a person can claim under HCAP; there is no age
lawfully be used as a place of residence and is in thelimits for applicants of HCAP; there is no requirement
Chief Commissioner’s opinion, a suitable buildingfor a purchaser to be an Australian citizen or
for use as a place of residence. Further to that, apermanent resident; and, applications are not
new home is said to be a home that has notrestricted to natural persons.
previously been occupied or sold as a place ofAs with most Government concessional schemes the
residence, and includes a substantially renovatedeligibility criteria can be quite complex to navigate
home.making it difficult to understand whether or not you
In order to be eligible to submit a HCAP applicationare actually eligible. Contact the lawyers at The Quinn
agreements for the sale or transfer of a new homeGroup to ensure that you are maximizing your
must be entered into after and including 1 July 2009savings when buying a new home. Whether you are
and before 1 January 2010.a first or existing homebuyer we are able to assist
Agreements for the sale or transfer are generallywith all of your contract and Conveyancing needs as
considered to be eligible if the new home is completewell as advise on any concessions that you may be
and ready for occupation or if the agreement is foreligible for.