Demystifying First Home Owner Duties and Grants

I have recently met with a few first home buyers and the amount of information they are greeted with is pretty overwhelming and can take the shine off the whole experience.

Below are some key facts about Western Australian stamp duty concessions for first home owners and the first home owner grant that should simplify at least some of the experience.

Eligibility

  1. Each applicant and their spouse cannot have owned property before in Australia
  2. One of the applicants must be an Australian citizen or permanent resident
  3. Each applicant must live in the property for a continuous period of at least 6 months commencing within the first 12 months of settlement
  4. All homes south of shark bay the total value of the home cannot exceed $750k, all those north of shark bay cannot exceed $1m
  5. No income or asset test

Buying an established home

  1. There is no first home owners grant
  2. No stamp duty payable where the value of the home does not exceed $430k, if between $530k and $430k there is a concessional rate, above $530k full stamp duty is payable

Buying a House and Land Package or Vacant Land

  1. Able to apply for a first home owners grant up to $10k
  2. Stamp duty is only payable on the land, no stamp duty payable where the value of the land does not exceed $300k, if between $300k and $400k there is a concessional rate, above $400k full stamp duty is payable

Buying Off the Plan

  1. Able to apply for a first home owners grant up to $10k
  2. No stamp duty payable where the value of the home does not exceed $430k, if between $530k and $430k there is a concessional rate, above $530k full stamp duty is payable

This is not all inclusive and of course each scenario has its own intricacies, so call us on 1300 GO BEYOND or email on enquiries@beyondbroking.net.au if you want to become a first home owner and let’s get the process started together. Alternatively, feel free to visit www.firsthome.gov.au for some light reading but we would much rather take your call.

It is also worth noting that this information is relevant as at February 2016 and duties rates and grants are reviewed annually in state budgets.