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First Home Buyers - Beware the requirements to benefit from grants |
The NSW government offers first home buyers grants and concessions. But to qualify, there are restrictions. |
First home buyers in NSW are offered a grant of up to $7,000 under the First Home Owner Grant Scheme and/or an exemption/ concession from transfer duty of up to $17,990, and mortgage duty up to $2,341, under the First Home Plus Scheme. |
To qualify for these benefits, first home buyers must, among other things, occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of completion of the agreement for purchase or construction of the home, as the case may be. |
To satisfy this residence requirement, the person must actually reside at the home, it is not enough for them to merely store their personal possessions there, and the home must actually be their main residence -that is, the person cannot mainly reside elsewhere, in rented accommodation, for example. |
Despite the residence requirement being well-entrenched in the law for some time now, it seems that some applicants for the benefits are still falling foul of it. |
First home buyers also need to be mindful of key differences between the two schemes, including eligibility thresholds, previous ownership of land, application for vacant land, occupancy requirements and noncommercial arrangements. |
The consequences of failing to comply with the eligibility criteria under either scheme are severe, with a liability to repay not just the amount of the grant or exemption, but also penalties of up to 100 per cent of the amount of the grant or exemption and interest in excess of 13 per cent per annum on the unpaid amount. |
Following changes to the law, those dissatisfied with a decision as to whether they have satisfied the residence requirement under the First Home Plus Scheme can now seek to have the decision reviewed. |
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