First Home Buyer Choice Scheme

What is stamp duty? (otherwise referred to transfer duty)

Stamp duty is a tax levied by Australian states and territories on property purchases, and it is:

• paid upfront;
• paid at the time of buying the property (within 3 months of the property settlement);
• a one-off charge; and
• calculated as a percentage of the property’s purchase price OR current market value (whichever is higher).

Eligibility

To be eligible for the FHBAS:

• the purchase must be for a new or existing home, or vacant land in NSW;
• the property value must be within the threshold amounts;
• the transfer must be for the whole property;
• you must be an individual, not a company or trust;
• you must be 18 years old or over;
• you and your spouse or partner, must never have owned or co-owned residential property in Australia;
• you and your spouse or partner, must never have previously received an exemption or concession under the scheme;
• at least one of the first home buyers must be an Australian citizen or permanent resident; and
• for new or existing homes, you must meet the requirements for living in the property.

Definition of a ‘new home’

A new home is a home which:

• has not been previously occupied or sold as a place of residence; or
• was substantially renovated; or
• built to replace a demolished premises.

Definition of a ‘spouse/partner’

Under the FHBAS, a spouse or partner is someone you are:

• legally married to; or
• living with in a de facto relationship.

If you are legally married but have separated, you are not considered to have a spouse if you:

• are not living with the person; and
• have no intention of living with that person.

Residence requirement

New or existing home

If buying a new or existing home, to satisfy the requirements for living in the property, the eligible first home buyers must:

• move into the home within 12 months after settlement; and
• live in the property as their principal place of residence for at least 12 continuous months,

Vacant land

If buying a vacant piece of land, to receive an exemption or concession under the FHBAS, the eligible buyers must:

• intend to build a new home; and
• move into the property within 12 months of the completion of construction; and
• live in the property continuously for at least 12 months.

Members of the Australian Defence Force (ADF)

If at the time contracts are exchanged, the eligible first-home buyer is a permanent member of the ADF, they will be exempt from meeting the residence requirements outlined above if they are enrolled to vote in NSW.

For joint applications, only one of the applicants needs to be an ADF member to be eligible for the exemption.

Changes in living arrangements

If the circumstances of the buyer change and they will not be able meet the residence requirement, they will no longer be eligible for the FHBAS and must arrange for the correct duty to be paid.

Buying with others who are not eligible

If you are buying a home with others who aren’t eligible under the FHBAS, you can still apply for the scheme if you and any other eligible buyers are purchasing at least half of the property, and this is called a shared equity arrangement.

However, ineligible buyers who form part of a shared equity agreement, must pay stamp duty on the share of the property they are acquiring.

Shared equity does not apply if your spouse is one of the ineligible buyers.