RevenueSA - First Home Concession


Stamp Duty First Home Concession
As a First Home Buyer, you may be entitled to the Stamp Duty First Home Concession. NOTE! The eligibility criteria for the Stamp Duty First Home Concession are similar to, but not the same as, the criteria for the $7,000 First Home Owner Grant. The Stamp Duty First Home Concession scheme does not apply where a conveyance: gives effect to a contract entered into on or after 5 June 2008; relates to land where a party to the conveyance has on or after 5 June 2008 entered into a contract for the construction of a home on the land;and relates to land where the construction of a dwelling house has commenced on or after 5 June 2008. The First Home Concession has been replaced by the First Home Bonus Grant and is available to first home buyers who have entered into a contract on or after 5 June 2008 and for owner builders who commence construction on or after 5 June 2008, subject to applicants meeting the eligibility criteria for the First Home Owners Grant. Who is eligible? Applicant(s) must be natural person(s) (i.e. benefits are not available to a corporation etc.) Applicant(s) must have entered into a contract for the purchase of: - a relevant interest in land: or - shares in a company that confer a right to occupy land of the company (a copy of the contract is to be produced with the conveyance/transfer). Applicant(s) must be the sole purchaser of the land or shares. No party to the application may have previously occupied a dwellinghouse, holiday house, flat or home unit (except as a minor) either in South Australia, Australia or elsewhere in pursuance of:- (i) any estate or interest conferring a right to possession (excepting any leasehold estate or interest other than that arising under a perpetual lease) of that party of the dwellinghouse; or, (ii) any interest of that party in shares conferring a right to occupy dwellinghouse. No party to the application may have previously received any benefit under the First Home Buyers Stamp Duties Concession Scheme (other than a concession granted in pursuance of a transfer of an interest under the South Australian Housing Trust Shared Ownership Scheme arising from the same agreement). The dwellinghouse must constitute the applicant(s) principal place of residence, or the applicant(s) must intend that the dwellinghouse will be the principal place of residence. If the applicant(s) meets the criteria, previous ownership of vacant, commercial or industrial property does not preclude the applicant(s) from gaining a concession. Requirements for Application 1. Vacant Land with intention to build Applicant(s) must intend to occupy the dwellinghouse, as their principal place of residence, within 12 months of the date of the completion of construction. - A construction contract and contract for sale & purchase of the land to which the construction contract relates must accompany the application & transfer prior to stamping. or 2. Vacant Land where Stamp Duty has been paid (before a construction contract was entered into to build a dwellinghouse on that land). Applicants must occupy the dwellinghouse as their principal place of residence, within 2 years of the date of conveyance/transfer. - The construction contract and contract for sale & purchase of the land must accompany the application. - A Stamp Duties Refund Form is to be lodged with the application. - In the case of an owner/builder, evidence of purchase of materials etc. is required. or 3. Purchase of Dwellinghouse Applicants must occupy the dwellinghouse as their principal place of residence, within 12 months of the date of conveyance/transfer. - The concession is not available where the dwellinghouse is to be used for rental or investment purposes. - A Contract for Sale & Purchase of the land must accompany the application & transfer. How much is the concession? For properties where the contract to purchase the first home is entered into on or after 27 May 2004 and prior to 5 June 2008, first home purchases up to $80,500 will continue to receive a full concession. For first home purchases where the property is valued between $80,501 and $100,000, the concession will reduce from 100% to 50% (2.5% reduction per $1,000 of property value) and will remain at 50% where the property is valued between $100,001 and $150,000. Thereafter the concession reduces by $24 for every $1,000 increase in property value above $150,000 and phases out completely for first home purchases above $250,000. To view a chart of the concession and duty payable for a property with a purchase price or value between $80,000 and $250,000 click here. To calculate the amount of the First Home concession and the amount of stamp duty payable, you can use the on-line calculator. For a property where the contract for purchase of the first home is entered into prior to 27 May 2004 and the property has a purchase price or value of $80,000, a full concession of Stamp Duty will apply. The amount of the concession is reduced when the value of the property exceeds $80,000. No concession is available on properties with a purchase price or value in excess of $130,000. To view a chart of the concession and duty payable for properties with a purchase price or value between $80,000 and $130,000, click here. You can download the application form here. Further information is available on the following Circulars: Circular 246 Circular 236 Circular 181 Circular 148 Circular 139 Circular 122 Circular 93 Circular 24

This page was last reviewed 4 June, 2008

Stamp Duty First Home Concession