Stamp duty exemption ends 1 July 2012

Do you intend to make an off the plan purchase?

Beware stamp duty exemption ends 1 July 2012

At present, if you are purchasing a new home (ie. Off the Plan purchase) under of $600,000, you do not need to be first home buyer to eligible for stamp duty exemption or concession. Under the NSW Home Builders Bonus (“HBB Scheme”), certain Off the Plan purchases are eligible for stamp duty concession or exemption. Where the value of the purchase is under $600,000, no stamp duty is payable under the HBB scheme where construction has not commenced. A stamp duty concession applies for completed new homes or developing projects where construction has already commenced.

The HBB is entirely unrelated to the First Home buyer scheme, purchaser are not required to be first home buyers to be qualified for the scheme, hence this schemes benefits investors intending to make off the plan investments under the value of $600,000 and has been introduced in 2010 as a measure to stimulate new construction projects.

The HBB scheme however only applies to Contracts entered into between 1 July 2010 and 1 July 2012, hence, investors intending to make an off the plan purchase under $600,000 will need to speed up the investment hunting process in order to take advantage of the stamp duty exemption/concession under the HBB scheme, off the Plan purchases made after 1 July 2012 will attract stamp duty.

For all your queries relating to off the plan acquisitions… call Zhang Partners.

Anica Zhang
Principal Lawyer
Zhang Partners Solicitors and Attorneys

Disclaimer: Contents of this article is for general information only and is not intended to be legal advice, for legal advice relating specifically to your intended acquisition, please contact Zhang Partners.)