first home owner boost payment

On 17 May 2017, the Government announced a change to the first home owner boost payment introduced at the beginning of this year.

The first home owner boost payment will now only apply to contracts for the purchase or construction of a new home entered into between 1 January 2017 and 30 June 2017, or in the case of owner builders, construction of the home (that is, when the foundations for the home are laid) must commence between those dates. The boost scheme was originally scheduled to cease on 31 December 2017.

Where the first home owner boost payment applies to a first home owner grant received on a contract to build a home, construction must commence within 26 weeks after entering into a building contract and be completed within 18 months after the commencement of construction. For owner builders or purchasers of a new home ‘off-the-plan’, construction of the home must be completed by 30 June 2019.

The first home owner grant of $10,000 will still be available for eligible first home owners who enter into a contract for the purchase or construction of a new home after 30 June 2017, or for owner builders who commence construction of their home after that date.

So, in short, the deadline is for;

Purchase of newly built property / never been lived in – Purchase contract signed by 30th June 2017

Construction of new property – Building contract to be signed by 30th June 2017
There are 2 parts to first home owner benefits in WA;

i) Stamp duty concession;

• A full stamp duty concession is available for eligible property purchases up to $430,000, then a tiered concessional rate applies up to $530,000.

• A full stamp duty concession is available for eligible vacant land purchases up to $300,000, then a tiered concessional rate applies up to $400,000 (a signed building contract is required to claim the stamp duty concession and the first home owners grant).

ii) Grant

• Available for eligible newly built property purchases up to $750,000.

• Available for eligible land and construction purchases up to $750,000.

If you would like some more information call Ben Hughes From Vasaio Finance on 0413 325 682 or email ben@vasaio.com.au 

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