THINKING OF BUYING OR BUILDING A NEW HOME? The State & Federal Governments are offering a range of incentives to help buyers in the property market. Below is a breakdown of the incentives available;
FIRST HOME OWNERS GRANT (WA)
HOME BUYERS ASSISTANCE ACCOUNT
The First Home Owner Grant (FHOG) is a WA State Government initiative to help first home owners to purchase their new first home sooner. The FHOG is a one-off payment that aims to encourage first home buyers into the market. As it currently stands, the FHOG is only available to first time buyers of a newly built property and is not available for the purchase of an established property.
First home buyers who meet a select criteria are also eligible to receive a grant from the Home Buyers Assistance Account, a grant of $2,000 which reimburses some of the incidental expenses incurred through purchasing a home.
Eligible first home buyers who are purchasing or building a new home with a total value less than $750,000 may apply for the $10,000 grant. If you are eligible for the FHOG, a concessional first home owner rate of duty will apply if the value of the dutiable property is below certain thresholds. When you claim a stamp duty concession for land, you apply the concession rate to the dutiable value of the property. For more information & eligibility visit www.finance.wa.gov.au
These expenses include things like; • Mortgage registration fees • Settlement fees • Inspection fees • Loan establishment fees • Mortgage insurance premiums • Lending institution fees For more information & eligibility visit www.commerce.wa.gov.au
STAMP DUTY This is paid by the purchaser to the State Government and is based on a sliding scale depending on the purchase price of the property. There are also some stamp duty concessions available for eligible first home buyers. Information on your respective State Government fee scales can be found online or from your selling or settlement agent. Stamp Duty does not apply for first home buyers where the value of the property is up to $430k. A discount applies for properties valued between $430,000 and $530,000 with full stamp duty applicable for purchases above this.
House & Land For purchasers of a house & land package, or where you are purchasing land to build a new home on, stamp duty is only applicable on the land purchase price, rather than the total value of the home, which is a significant saving.
Apartments The WA State Government is offering a rebate of 75% of the duty paid, capped at a maximum of $50,000 for the preconstruction contract and $25,000 for a contract under which construction has already commenced. The rebate is available to owner-occupiers and investors who enter into • a pre-construction contract between 23 October 2019 and 23 October 2021 (inclusive) to purchase a new residential unit or apartment or • a contract signed between 4 June 2020 to 31 December 2020 to purchase a new unit or apartment under construction. For more information & eligibility visit www.wa.gov.au
BUILDING BONUS PACKAGE
HomeBuilder is a time-limited grant program to help the residential construction market to bounce back from the Coronavirus crisis.
The WA State Government is offering a $20,000 grant to build a new home as part of the Building Bonus Package.
HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date.
The Building Bonus grants are open from June 4, 2020 until December 31, 2020 to any homebuyer who wishes to build a new house or purchase a new property in a single-tier development (such as a townhouse) prior to completion of construction.
HomeBuilder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme. For more information & eligibility visit www.treasury.gov.au
FIRST HOME SUPER SAVER SCHEME The First home super saver (FHSS) scheme was introduced by the Australian Government in the Federal Budget 2017–18 to reduce pressure on housing affordability. The FHSS scheme allows you to save money for your first home inside your super fund. This will help first home buyers save faster with the concessional tax treatment of superannuation.
The State Government’s scheme is not means tested and has no cap on the property value. The $20,000 grant builds on the Commonwealth Government’s announcement to provide $25,000 for some owner-occupiers who build a new home. This means those Western Australians who are eligible for the Commonwealth grant, could receive up to $45,000 for new residential builds. First homebuyers will also be able to access the existing $10,000 First Home Owner Grant and first home buyer duty concession, meaning potentially up to a $69,440 benefit for Western Australian first homebuyers.
For more information & eligibility visit www.ato.gov.au Pindan does not give any warranty for any error or omission contained within this brochure, which is subject to change. This flyer is a general guide only. The information and images are intended as an introduction to property buying and is general in nature, not financial advice. You must rely on you own inquiries and seek professional advice from a qualified advisor, if required.