First Home Plus One
- When does First Home Plus One commence?
It applies to agreements for sale executed on or after 1 May 2007, or transfers with no prior contract first executed on or after that date.
- What proportion of the property must the first home buyers acquire?
The eligible first home buyers must acquire at least 50 per cent of the property.
- Can the first home buyers spouse be an equity partner?
A spouse is not considered to be an equity partner. A purchaser is ineligible if the purchaser¿s spouse has previously owned residential property or received a benefit under First Home Plus.
- How is duty calculated?
Duty is calculated with reference to the proportion of the property purchased by other parties.
- What if the other party is acquiring an interest in the property of 5 per cent or less?
In that case such acquisition is disregarded and the normal First Home Plus exemption or concession will apply.
- Has the First Home Owner Grant scheme changed?
There is no change to the FHOGS. Hence if a person is acquiring an interest as an equity partner they will be an applicant for the purpose of determining whether the $7000 grant is payable.
- Does First Home Plus One apply to purchases of vacant land?
Yes, provided the value does not exceed $450 000, the first home buyers intend to build their first home on the land, and the other eligibility criteria are met.
- Can a first home buyer acquire 50 per cent of a $1 million property and apply for the concession?
No, the total value of the property (home or land) can not exceed the existing thresholds ie $600 000 for a home and $450 000 for vacant land.
- Who is liable to pay the duty?
All parties are jointly and severally liable to pay whatever duty is payable on the relevant documents.
- Does the normal residency requirement still apply?
Yes, it applies to the first home buyers. That is, at least one of them must occupy the home as their principal place of residence for a continuous period of six months commencing within 12 months from completion of the agreement.
- Is there any further concession when the first home buyer buys out the equity partner?
No, normal transfer duty will be payable on the value of the interest acquired at that time.
- Does the equity scheme have to be approved by the Chief Commissioner?
Where the equity arrangement is provided or facilitated by a corporation, the Chief Commissioner has the discretion not to approve the scheme.
- Is land tax payable?
If all the owners (including the equity partners) are natural persons and either:
a) one of the eligible first home buyers occupies the property as their principal place of residence as at 31 December, or
b) the property is vacant land on which the first home buyers will build and occupy their home within 2 years, the land is exempt from land tax.
However, the value of any interest owned by a company or trustee of a trust may be subject to land tax.
