First Home Owner Grant (New Homes) scheme
The First Home Owner Grant (New Homes) scheme (the Scheme) was established to assist eligible first home owners to purchase a new home or build their home by offering a grant.
The grant amount is determined by the date of the eligible transaction. This is the date of the contract to purchase a new home or contract to build a home. For an owner builder, the eligible date is when the building work commences.
For eligible transactions made on or after 1 January 2016, the grant amount is $10,000.
For eligible transactions made between 1 October 2012 and 31 December 2015, the grant amount is $15,000.
What is a new home?
A new home is a home that has not been previously occupied or sold as a place of residence and includes a home that has been substantially renovated and a home built to replace demolished premises.
1. A home that has been occupied, including by the builder, a tenant or any other occupant is not considered a new home.
2. Where the home is being purchased, it must be the first sale of that home.
Am I eligible?
To be eligible for the grant:
- The contract date must be on or after 1 January 2016
- The home is a brand new home
- You are over 18
- You or your spouse (including de facto spouse) have never held a relevant interest in any residential property in Australia prior to 1 July 2000
However, you may be eligible if you or your spouse, including de facto spouse, have only had a relevant interest in any residential property in Australia on or after 1 July 2000 and you have not resided in that property for a continuous period of at least 6 months.
- The value of the property must not exceed the First Home Owner Grant Cap of $750,000
- You have not received a first home owners grant in any State or Territory, unless subsequently repaid
- You need to live in the home for a continuous period of at least 6 months
- At least one applicant is a permanent resident or Australian citizen
- Each applicant must be a natural person and not a company or trust
If you cannot meet all of the eligibility requirements, you are not eligible to receive the grant. If you receive the grant and fail to meet the eligibility requirements (for example, not living in the home for a continuous period of at least 6 months), you need to payback the grant. Failure to do so can result in prosecution and penalties up to $11,000.
If you are part of the Australian Defence Force and all applicants are on the New South Wales electoral roll, you may be eligible for an exemption from the 6 month residence requirement.
How can I apply?
You can apply for the grant through your financial institution or directly through us, by submitting a First Home Owner Grant (New Homes) Application form (OFH001)
Applications lodged with financial institutions will have the grant available for settlement or for the first draw down on contracts to build. For a list of approved agents, visit the Approved agents> page.
If applying directly with us, the house must be complete and you must be registered on title.
Applications must be lodged within 12 months of completion or settlement of your new home. Your agent (for example, a solicitor or conveyancer) can help you lodge your application and documents with us.
New Home Grant scheme
The New South Wales New Home Grant Scheme was introduced on 1 July 2012 to stimulate the construction of new homes.
The scheme provides a grant of $5,000 towards the purchase of new homes, homes off the plan and vacant land on which a new home will be built.
Changes to the New Home Grant Scheme were announced in the 2014 State Budget. These changes effect agreements for sale or transfer (where there is no agreement) entered into on or after 1 July 2014.
Please select when you entered into your agreement or transfer:
Agreements or transfers entered into on or after 1 July 2014
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What are the eligibility requirements for the grant?
The following requirements must be met to be eligible for the grant:
An agreement or transfer for the purchase of land:
- That is the site of a new home that is complete and ready for occupation (new home purchase)
- Intended to be used as the site of a new home, which is to be built before completion of the agreement (off the plan purchase)
- That is intended to be used as the site of a new home and which is not an off the plan purchase (vacant land purchase). Construction of the home, by way of laying foundations, must commence within 26 weeks (or a longer period allowed by the Chief Commissioner) of completion of the purchase. However, there is no limit on the time of construction.
Agreement or transfer of vacant land must be for the whole of the land. If the land is a parcel of land where two or more homes are to be built, the agreement or transfer must be for that part of the land which has exclusive occupancy.
- The value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.
What transactions are not eligible for the grant?
The following transactions are not eligible for the grant:
- A transfer made on or after 1 July 2012 that is in conformity with an agreement or transfer entered into prior to 1 July 2012.
- An agreement or transfer of a new home that replaces an agreement or transfer made before 1 July 2012 that was for substantially the same property.
- An agreement or transfer of a new home or vacant land that is intended to be used or made available for use for any purpose other than that of a residential purpose, for example a commercial, industrial or professional purpose.
- An agreement or transfer of an existing home to knock down and build a new home on the land.
- An agreement or transfer that is eligible for a duty exemption under the First Home – New Home Scheme or a grant under the First Home Owner Grant Scheme.
- Where the payment of the grant has previously been approved on the land.
Who can apply for the grant?
You can be a natural person, a company or trustee of a trust.
The grant is available to investors as well as owner occupiers.
You must be an Australian citizen, Australian resident or an Australian-owned body.
Where a trustee is acquiring the land, at least 50% of the beneficial interest in the land must be held for the benefit of Australian citizens, Australian residents or Australian-owned bodies.
How is the grant paid?
The grant is paid as a credit against your liability for duty on the agreement or transfer.
If the duty payable is greater than $5,000, only the difference between the duty payable and the $5,000 grant is to be paid.
If the duty payable is less than $5,000, no duty is required to be paid and a payment of the difference between the grant and the duty payable will be paid by electronic funds transfer (EFT).
If the total amount of duty payable (whether greater or less than $5,000) is paid, the $5,000 grant will be paid by EFT.
How do I apply for the grant?
To apply for the grant, submit an Application for NSW New Home Grant form (ODA 072A). Every purchaser and transferee must complete the application.
We may require documentary evidence from you to support your claim.
A separate application is required for each eligible agreement or transfer.
Can I receive the grant on another property?
Yes. However, every purchaser and transferee is limited to one grant per financial year.
Also, only one grant will be issued per property. For example, if an off the plan home was purchased and the grant was paid but the home was later sold before completion, the new owners could not apply for the grant.
What is a home?
A home is a building (affixed to land) that:
- May lawfully be used as a place of residence
- Is, in the Chief Commissioner’s opinion, a suitable building for use as a place of residence.
A suitable building for a place of residence includes a house, a unit or flat, a townhouse, a villa, or any other type of self-contained dwelling affixed to land (including a manufactured home as defined in the Local Government Act 1993), where evidence can be provided that the local council is satisfied that the dwelling can be occupied as a place of residence.
What is a new home?
A new home is a home that has not previously been occupied or sold as a place of residence, and includes substantially renovated homes.
What is a substantially renovated home?
A substantially renovated home is a home:
- That is a new residential premises within the meaning of section 40-75(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999 (Cth)
- That, as renovated, has not been previously occupied or sold as a place of residence.
Under the Act, ‘substantial renovations’ of a building are defined as renovation in which all, or substantially all, of a building is removed or replaced. The renovations may, but need not, involve the removal or replacement of foundations, external walls, interior supporting walls, floors, roof or staircase.
For the most up to date information please refer to the Office of State Revenue website: www.osr.nsw.gov.au