First Home Owner Changes

3RD July 2014

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Zeeshan Pasha of Nifnex interviews Doc Casely (Certified Practicing Conveyancer) o f  Thane Conveyancing.

ZP: What are the changes that came into effect on 3 July 2014?

Doc: When a home buyer is eligible for the First Home Owner Grant, the buyer is entitled to a concessional rate of transfer duty if the value of the property is below certain thresholds.

ZP: What are the current values?

Doc: Up to $530,000 for a house and land or $400,000 for vacant land.

ZP: What was it previously?

Doc: Up to $600,000 for a house and land. Vacant land is unchanged.

ZP: How does a buyer know whether the old or new rate applies?

Doc: The date of execution of the contract (usually acceptance of the offer by the seller) will dictate into which period it falls

If the property includes a home:

Dutiable Value                                         Rate of Duty

$0 – $430,000                                                      Nil

$430,001 – $530,000                                    $19.19 per $100 or part of $100 above $430,000

 

If it is vacant land:

Dutiable Value                                         Rate of Duty

$0 – $300,000                                                    Nil

$300,001 – $400,000                                  $13.01 per $100 or part of $100 above $300,000

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