The Australian Government has made number of changes towards government fees in property including Stamp Duty, Lenders’ Mortgage Insurance, New Home Grant Scheme, First Home Owners Grant, and more. Most of these changes are effective from 1 July 2017, however below is a brief outline of changes.
The Queensland Government has decreased the First Home Owner Grant from $20,000 to $15,000 and the change is effective from 1 July 2017.
New South Wales
The changes in Government Housing Affordability Reforms in New South Wales include:
First Home Buyer Assistance Scheme
This has replaced the First Home – New Home Scheme.:
- The scheme is available for houses valued between $650,000 and $800,000. The sliding scale will determine the duty concession.
- Properties up to $800,000 will get Transfer Stamp Duty relief.
- No Transfer Stamp Duty for First Home Buyers on new and existing homes to up to $650,000.
- Concessions on a vacant land, however, are still the same.
First Home Owner Grant (FHOG)
First home buyers can also get the FHOG of $10,000 if they are building a new home valued up to $750,000. If a first home buyer is purchasing a new property, properties up to $600,000 will be eligible for the grant.
New Home Grant Scheme
This scheme of $5,000 is not available anymore.
Lender’s Mortgage Insurance Duty
Insurance duty on lenders’ mortgage insurance has been removed.
Previously, non-resident investors were paying a surcharge of 4 percent on transfer stamp duty for new purchases. The surcharge percentage has now increased to 8 percent.
Deferred Stamp Duty
Deferral of transfer stamp duty for a period of 12 months has been ended for investors who make off-the-plan residential purchases. However, if a person plans to live in the property, he or she will still have a right to delay a payment of stamp duty for 12 months, which will defer a payment for 3 months to 15 months after settlement.
Australian Capital Territory
The Australian Capital Territory introduced a number of changes from 7 June 2017. Transfer Stamp Duty rates have changed for all the individuals who plan to buy a home.
Home Buyer Concession Scheme (HBCS)
To buy vacant land and new homes, the government has launched new concessional Transfer Stamp Duty rates. If you are buying a property that has undergone significant renovation, it will no longer be eligible for the Home Buyer Concession Scheme. The Home Buyer Concession Scheme rates and new Transfer Stamp Duty will be eligible for purchases between 7 June 2017 and 31 December 2017.
Victoria have made the following changes effective from 1 July 2017. Transfer Stamp Duty on houses with a value of up to $600,000 will not be applicable for first home buyers.
Transfer Stamp Duty Relief
There will be a first home buyer stamp duty relief for properties with a value of up to $750,000. Whereas, sliding scales will determine the duty concession for houses with a price between $600,000 and $750,000.
First Home Owner Grant
- The first home owner grant of $10,000 is still in applicable for those in Victoria
- For new homes in regional Victoria valued up to $750,000, the First Home Owner Grant has increased to $20,000 and it will remain the same until 30 June 2020.
The government of South Australia introduced the following changes that became effective from 22 June 2017. Off-the-plan Transfer Stamp Duty concession has received an extension of one year, i.e., until 30 June 2018. For non-residents who purchased a property between 22 June 2017 and 30 September 2017, Transfer Stamp Duty concessions do not apply.
First Home Owner Grant
Buyers who entered into a contract between 22 June 2017 and 30 September 2017 for off-the-plan apartments are eligible for a grant of $10,000.
For non-residents who purchased a new house from 1 January 2018 and onwards, a new surcharge of 4 percent will be applied on Transfer Stamp Duty.
The Western Australia Government has decreased the first home owner grant from $15,000 to $10,000.
In Tasmania, buyers have received an extension for the First Home Owner Grant of $20,000 until 30 June 2018.
Moreover, the LTO registration fee for Registration of Transfer, Discharge of Mortgage, and Registration of Mortgage has also changed from 1 July 2017 in the following states:
- New South Wales
- Australian Capital Territory
- Western Australia
- South Australia
There have been no changes in the Northern Territory regarding LTO fees.
Would you like to know more about the changes between the states and territories? Speak to our team at Hunter Galloway now on 1300 088 065 or email [email protected]