Review of Federal and State Benefits for First Home Owner – July 2017

Federal Government - ATO

Voluntary contribution to super made after 1 July 2017, can be apply to withdraw for first home deposit, after 1 July 2018.

Voluntary contributions include:

  • Undeducted (non-concessional) personal contributions
  • Deducted (concessional) personal contributions
  • Salary sacrifice contributions.

Up to $15,000 of voluntary contributions per financial year.

The maximum amount that can be released is $30,000 of personal contributions plus an associated deemed earnings amount.

Concessional contributions and earnings that are withdrawn will be taxed at marginal rates less a 30 per cent offset.

NOTE: Legislation is currently being developed for this measure. Please consult legal advise for latest updates.

» Link to ATO website.

Victoria

 

First Home Owner Grant (FHOG), changes from 1 July 2017:

  • $10,000, for new homes or building a new home in Melbourne metropolitan area, up to $750,000.
  • $20,000, for new homes or building a new home in regional Victoria, up to $750,000.
  • FHOG is no longer applicable to established dwelling.

 

Stamp Duty Concession:

  • No stamp duty for first home buyers, for Primary Place of Residence (PPR) purchase up to $600,000. Estimated stamp duty saving around $15k for up to $600k property price.
  • Sliding scale concession applies for first home buyer buying PPR between $600,001 to $750,000.
  • Off-The Plan (OTP)  concession applies only to home buyers. First home buyer buying off-the-plan as Primary Place of Residence (PPR) for  up to $750,000. Not first home, but new home buyer  is capped at $550,000.
  • This is no longer applicable to investment properties.

 

» Link to State Revenue Victoria website.

South Australia

 

First Home Owner Grant (FHOG):

  • $15,000, for new homes or building a new home, up to $575,000.
  • FHOG is not applicable to established dwelling.

 

Off-The-Plan (OTP) Stamp Duty Concession:

  • Sliding scale concession applies for to all buyers of OTP or substantially refurbished apartments, up to $500,ooo. Saving up to $21,330 on stamp duty.
  • OTP Stamp Duty Concession is in addition to First Home Owner Grant.
  • This is applicable to apartments only.

 

Pre-Construction Grant for OTP Apartment Purchasers

  • Additional $10,000 grant may apply for contract signed between 22 June 2017 and 30 September 2017.

 

» Link to RevenueSA website.

ACT

 

First Home Owner Grant (FHOG) :

  • No change since 1 January 2017.
  • $7,000 for homes valued up to $750,000.

 

» Link to State Revenue ACT website.

Queensland

 

First Home Owner Grant (FHOG) – no change:

  • No change since 1 July 2016.
  • $20,000, for new homes or building a new home, up to $750,000.
  • FHOG is not applicable to established dwelling.

 

» Link to Queensland Government website.

Northern Territory

First Home Owner Grant (FHOG):

  • Up to $26,000, to buy or build a new property as your first home.
  • FHOG is not applicable to established dwelling.

Household Goods Grant:

  • Up to $2000, if the first home is a new property.

First home owner discount (on stamp duty):

  • For property up to $650,000, full concession on stamp duty on the initial $500,000. This is up to $23,928.60.
  • This is applicable to established property.

Home Renovation Grant:

  • Up to $10,000 for buying first home that requires renovation.

 

» Link to NT Government website.

Western Australia

 

First Home Owner Grant (FHOG) :

  • Announced 17 May 2017, the $5000 grant to be ceased by 30 June 2017.
  • This grant was originally intended to continue until 31 December 2017.

 

» Link to Western Australia Government website.

Tasmania

First Home Owner Grant (FHOG):

  • $20,000 until 30 June 2018, after which it will revert to $10,000

 

» Link to Tasmanian Government website.

Disclaimer: The summary above are interpretations  from various government websites, as of 28 June 2017. Please consult legal advise for policies applicable to your own circumstances, at the time of the legal consultation.