Reading time: 3 minutes

With property prices skyrocketing, the NSW Government offered a couple of incentives to First Home buyers in New South Wales – the “First Home Owner Grant (New Homes) scheme” and the “First Home – New Home Scheme”.

The eligibility criteria for the 2 schemes available are generally the same.

It must be your first home, and a new home.

You must be a natural person who is over 18 years of age and either an Australian citizen or permanent resident, and the agreement must be for the purchase of the entire property. If you are purchasing your property with another one or two or more purchasers, each of you must be over 18, but only one of you needs to be an Australian citizen or permanent resident.

Even if you meet the above requirements, you may not be eligible if your partner (married or de facto), who may not even be a party to the transaction, have previously owned property in any form in any State or Territory or previously received an exemption or concession under this Scheme.

For both incentives – any new homes over $650,000 are not eligible.

First Home Owner Grant (New Homes)

If you are an eligible purchaser, and the property you are purchasing does not exceed the First Home Owner Grant cap of $650,000, you can lodge an application for this grant within 12 months of completion or settlement of your new property.

$15,000 will be directly deposited into a bank account of your choice.

Note that if you receive this grant, and then later fail to meet eligibility requirements, such as living in the property for 6 months post-settlement, you will have to pay back this grant.

First Home – New Home Scheme (NSW)

This scheme relates to the stamp duty liabilities to be paid by the purchaser. There are a few important questions to ask in relation to the First Home – New Home Scheme.

Firstly, does the property fall within the threshold? An exemption on transfer duty is available for any new homes which are under $550,000, and a concession is available for new homes which are valued over $550,000 but under $650,000.

Secondly, how do you apply? Contracts must have already been exchanged between you and the vendors. You can then apply directly to the Office of State Revenue.

And finally, do you have to live in the property? The answer is yes. If you have purchased this property with other people, at least one of you must occupy the new property within 12 months of settlement/completion and also live there for a continuous period of at least 6 months.

It is important to discuss your eligibility with your lawyer as you could be saving a significant amount on your purchase. Your lawyer will have a copy of the contract and necessary details at hand and will be able to assist you in lodging applications with the Office of State Revenue.

LegalVision cannot provide legal assistance with this topic. We recommend you contact your local law society.

Webinars

Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

Online
If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Online
Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Online
Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Online
Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Online
Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Online
Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Online
Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

Online
As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards