2012 NSW State Budget

The NSW Treasurer, the Hon. (Mike) Michael Bruce BAIRD, MP announced the following changes to State taxes and grants as part of the 2012 State Budget:

New Home Grant Scheme

From 1 July 2012, a new $5 000 grant will be provided to buyers of new homes, whether off the plan or newly built, with a value up to $650 000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450 000

The grant is targeted at all non-first home buyers and is available to investors as well as owner occupiers. The grant will be administered through the transfer duty payment process.

The relevant form and factsheet will be made available prior to the commencement of the grant.

First Home Owner Grant (New Home) Scheme

From 1 October 2012, the First Home Owner Grant Scheme will be replaced by the First Home Owner Grant (New Home) Scheme. The new scheme will only apply to first home owners who purchase or build a new home valued at up to $650 000

The grant will increase from $7 000 to $15 000 from 1 October 2012 to 31 December 2013 and to $10 000 from 1 January 2014.

First Home – New Home

From 1 July 2012:

  • the transfer duty exemption cap on new homes increases to $550 000 with duty concessions for new homes valued between $550 000 and $650 000

  • the transfer duty exemption cap on vacant land increases to $350 000 with duty concessions for vacant land valued between $350 000 and $450 000

Deferred abolition of duties

The abolition of marketable securities duty on unquoted marketable securities has been deferred until 1 July 2013.

The abolition of duty on mortgages has been deferred until 1 July 2013.

The abolition of transfer duty on non-land business assets has been deferred until 1 July 2013.

* Picture courtesy of Soata Architects