Stamp Duty Exemption Info for First Home Owner FREE Download

What you need to Know About

How You Can Save Up to $17,990.00

First Home Owners Plain English Guide

1. What's the Stamp Duty

Exemption All About?

The Stamp Duty Exemption is a Government tax concession especially for first home buyers. When buying a own home, Stamp Duty refers to a Government tax imposed upon you as the buyer. (see the Stamp Duty Exemption Matrix Below).

The Tax applies to both the property itself and up until 1st. September 2007, your mortgage too. This has now been abolished on all residential Real Estate for owner occupiers. The home buyer has to be a real person, this term just means the buyer cannot be a company or Trust to qualify for the Stamp Duty Exemption. You will often see reference to a "Real Person" on Government and Home Lenders application forms - it's nothing to worry about.

2. What Does Stamp Duty Apply To?

Stamp Duty when applied to buying residential real estate applies to the price paid for the property (this is known as Contract Stamp Duty). As a First Home Buyer you are the Stamp Duty Exemption applies to you and you will not pay any duty on your first home up to $500,00, after this you Stamp Duty Exemption will decrease gradually to zero at $600,000 (see the Stamp Duty Exemption Matrix Below)

3. How Much Will I Save Due To The Stamp Duty Concession?

The total amount of stamp duty that applies to a real estate purchase directly relates to the price paid for the property. The maximum saving on Contract Stamp Duty peaks for a home with a purchase price of $500,000. The amount saved via the Stamp Duty Exemption at this price is $17,990.00.

The full stamp duty exemption ends at $500,000. A sliding scale concession gradually reduces your saving to zero at $600,000 where full Stamp Duty is once again applicable. For a more detailed look at the savings you are entitled to as a first home buyer through the Stamp Duty Concession please refer to the Stamp Duty Concession Matrix provided on this page. You can also download or print this document for your convenience.

4. I am Buying a Piece of Land, Does the Stamp Duty Concession Still Apply?

The Stamp Duty Exemption does apply to a land only purchase. The land must be intended for residential use and is where you plan to live.

This is a little different to the First Home Owners Grant. The grant only applies to a dwelling (home, unit etc.) that is either already in built or is planned to be built in the immediate future.

Once again if a mortgage is required to buy the land and the purpose of the purchase is provide you with a future home site Mortgage Stamp Duty no longer applies.

The First Home Plus Scheme provides a 100% exemption from transfer (Stamp) duty on homes valued up to $500 000, there are concessions on duty for homes valued between $500 000 and $600 000.

Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $300 000, and will receive concessions on duty for vacant land valued between $300 000 and $450 000.

5. How Do I Apply For the Stamp Duty Concession?

All of the application forms required for all the First Home Owner benefits including the "First Home Plus Scheme" are right here.

The First Home Owners Grant Application is usually handle by the people helping you with your home loan (people like me).

The First Home Plus Scheme application for your exemption or concession from Contract Stamp Duty is usually taken care of by your solicitor or conveyancer who is assisting with your first home purchase.

Should you still want some more information you can contact me directly (contact me), I would be happy to help you in any way I can and help you with owning your first home.

All the Best For You And

Your First Home

Jamie Wadley

HunterWide Home Loans