At the end of the financial year states and territories reassess their budgets, publish new incentives and benefits for those wanting to enter the property market. State and territory governments have each instituted a variety of incentives to increase the supply of housing and to dampen pressure on property prices. Here is an overview of the changes and how they may affect you.
On 6 June 2012, the ACT government introduced the first step of a plan that will ultimately phase out stamp duty in the Territory over the next 20 years. This will have a mixed effect on buyers, with some coming out ahead and others being a little worse off.
In terms of stamp duty prices, the change is almost uniformly positive for anyone purchasing a property valued under $750,000.00. Stamp duty has decreased across the board for purchases below this price. For example, if you purchase a property valued at $200,000.00 you will now pay only $4,800.00 in stamp duty, whereas previously it would have been a whopping $5,500.00.
For those purchasing property for more than $750,000.00 however, there has been an increase in stamp duty.
If you are considering buying a house and would like to see the new stamp duty fees, the figures are available at: www.revenue.act.gov.au/duties/land_and_improvements.
Other assistance provided by the ACT Revenue Office for purchasing a house is available at:www.revenue.act.gov.au/home_buyer_assistance.
From 1 October 2012, the First Home Owner Grant ($7,000.00) will be replaced by the $15,000.00 First Home Owner Grant (New Homes) Scheme. First home owners who purchase or build a new home where the contract date is on or after 1 October 2012 will be eligible for the $15,000.00 grant. The grant is capped, with only homes under $650,000.00 eligible.
The $7,000.00 first home owner grant for established properties ends on 30 September 2012, so get in quick! The new grant will reduce to $10,000 on 1 January 2014.
For more information check out the NSW Office of State revenue website:www.osr.nsw.gov.au/
From 1 July 2012 the rates of stamp duty payable when purchasing a principal place of residence will decrease.
Additionally there are two main concessions that may be available to you. These are:
This is a concession rate on transfer duty for those buying their first property as their primary place of residence. There is no duty for homes up to $500,000.00 in value and a sliding concession for those up to $600,000.00, with those above this price ineligible for the concession. Available to those who have never owned property before, who intend to move into the property within 12 months of settlement and remain living in it as their principal place of residence for 12 months.
This is a concession being reinstated as of 1 July 2012. It is available to those who have owned property before, who intend to move into the property within 12 months of settlement and remain with it as their principal place of residence for 12 months. The concessional transfer duty rate is $1 for each $100 or part of $100 which will apply to the first $350,000 of the value of the home. Duty at the general rates will apply to any remaining part of the value of the property. For more information see: www.osr.qld.gov.au/home-page-promo/home-concession-info-sheet.pdf
This information is correct as of 1 July 2012. Government policy is subject to frequent change so we recommend you confirm the information on this page with your state Revenue Office before acting on it. Links to the various State Revenue Sites are provided above.