NSW HOME BUILDERS BONUS

Updated November 12th 2013

The NSW State government announced the introduction of various stamp duty concessions, to be known as the NSW Home Builders Bonus (HBB) as part of its 2010 budget. The HBB applies to agreements for the sale and transfer of NSW land entered into between 1 July 2010 and 30 June 2012. There is no limit to the number of properties an entity may acquire under this scheme and the purchaser is not restricted to being a natural person. Therefore, an individual, company, trust or superannuation fund can take advantage of the stamp duty concessions. Additionally, the purchaser is not required to occupy the property in order to receive the exemption. The stamp duty concessions cover four types of transactions:

New Home Purchase

    • This 25% stamp duty concession is available for a new residential property which has never been previously occupied or sold, or an off the plan purchase when construction has already commenced. The value of the property must not exceed $600,000.

Off the Plan Purchase

    • This is an agreement that a site will be used to construct a new residential dwelling but construction by laying of foundations has not commenced. The preliminary work of demolition, excavation and site stabilisation is not considered part of construction commencement. A full stamp duty exemption is available if the property value does not exceed $600,000.

Vacant Land Purchase

    • Vacant land which is under $400,000 and purchased with the intention of being used as a site for a new home will have no stamp duty payable on the transaction, provided that construction commences by laying foundations within 26 weeks of the transaction being completed. There is no time limit for the completion of the home.

Eligible Senior Principal Place of Residence Purchase

  • A full stamp duty exemption will be available for new residential property purchases of less than $600,000 by persons over 65 years of age or in the case of a married or defacto couple, one party is over 65 years of age. The eligible senior (and spouse) must establish the property as their primary place of residence within twelve months of purchase and reside in the property for a continuous period of at least twelve months. To be granted the exemption, the senior must have previously owned and occupied a residential property in NSW for the preceding twelve months and sell this property within 6 months of the transfer date.