Housing affordability has been a hot topic over the past year. Lawlab summarises some of the federal, state and territory policies that benefit first home buyers, with recent budget announcements highlighted and more to come.
The First Home Super Saver Scheme has been introduced to help first home buyers save for a deposit. How does it work?
- From 1 July 2017, individuals can make voluntary contributions (i.e. salary sacrifice) to their superannuation account up to $15,000 per year and up to $30,000 in total (and subject to the existing annual superannuation caps).
- They can they withdraw these savings (plus any earnings on the investment of these savings) any time after 1 July 2018 when they need it for a deposit to buy a first home.
- The contributions and withdrawals are taxed at a much lower rate than they would otherwise be taxed at so first home buyers can save more money in this scheme.
- As set out in last year’s budget, the first home owner’s grant was reduced to $7,000 from 1 January 2017 for homes valued up to $750,000.
New South Wales
- No stamp duty for first home buyers of their principal place of residence (PPR) (including existing dwellings and new dwellings) up to $650,000. This means savings of up to $24,740 on a $650,000 home.
- Concessional stamp duty for first home buyers of their PPR between $650,000 and $800,000. This means a saving of $10,950 on a $750,000 home.
- Continuation of first home owners grant of $10,000, with the threshold reduced to $600,000 for new homes, and remaining at $750,000 for first home buyers building a new PPR.
- Continuation of the first home owner’s grant of $26,000 for new homes and first home owner’s discount of up to $23,928.60 on stamp duty on existing homes.
- Continuation of the first home owner’s grant of $20,000 until 31 December 2017 for new homes valued up to $750,000.
- No stamp duty for first home buyers of their PPR (including existing dwellings and new dwellings) valued below $600,000. This means savings of up to $15,535 on a home valued up to $600,000.
- Concessional stamp duty for first home buyers of their PPR between $600,000 and $750,000.
- First home buyers may be eligible for a first home owners grant of $20,000 to buy their PPR in regional Victoria for homes valued up to $750,000.
- State budget to be announced in July 2017.
- Continuation of the first home owner’s grant of $20,000 until 30 June 2018, after which it will revert to $10,000.
- State budget to be announced in September 2017.
Disclaimer This information is general in nature only and does not constitute legal advice. Lawlab accepts no liability for the content of this information. You should obtain legal advice specific to your individual circumstances. Lawlab’s liability is limited by a scheme approved under Professional Standards Legislation. Legal practitioners employed by lawlab are members of this scheme.