NSW Housing Construction Acceleration Plan (HCAP)

When does HCAP Apply?

It applies to agreements for sale of a new home executed on or after 1 July 2009 and before 1 January 2010, or transfers of a new home with no prior contract first executed on or after 1 July 2009 and before 1 January 2010.

How many new homes can I purchase under HCAP?

There is no limit on the number of new homes a person may purchase under HCAP.

What proportion of the property must the purchaser acquire?

The agreement or transfer must be for the whole of the land. If the land is a parcel of land on which two or more homes are built or being built, the agreement or transfer must be for that part of the land that is an exclusive occupancy.

Is there a limit on the value of the new home?

The dutiable value of the property under the agreement or transfer must not exceed $600 000.

What is dutiable value?

The dutiable value of dutiable property that is subject to a dutiable transaction is the greater of:

• the consideration (if any) for the dutiable transaction (being the amount of a monetary consideration or the value of a non-monetary consideration), and

• the unencumbered value of the dutiable property.

How is duty calculated?

If an application is approved under the Housing Construction Acceleration Plan the amount of ad valorem duty chargeable is reduced by 50%.

What is a new home?

A home is a building that may lawfully be used as a place of residence and is in the Chief Commissioner’s opinion, a suitable building for use as a place of residence and includes a unit, apartment and substantially renovated home.

A new home is a home that has not previously been occupied or sold as a place of residence. Unless it is an off the plan purchase agreement, the new home must be complete and ready for occupation.

Can I apply under HCAP if the purchase is also eligible under First Home Plus?

No. HCAP specifically excludes an agreement or transfer that would be eligible under First Home Plus.

Can I apply under HCAP if I am also eligible under the First Home Owner Grant?

No. HCAP specifically excludes a transferee that would be eligible under the First Home Owner Grant on the purchase.

Do I have to be an Australian citizen or permanent resident?

No. There is no requirement that a purchaser be an Australian citizen or permanent resident.

Is there any age limit on applicants?

No. There is no age limit on applicants under HCAP.

Does HCAP only apply to natural persons?

No. HCAP is not restricted to natural persons.

Can I rescind my contract and enter into a new contract after the commencement date of the relevant scheme to purchase or build the same home?

HCAP will not apply to an agreement or transfer if it replaces an agreement or transfer made before 1 July 2009 and the replaced agreement or transfer was for the sale or transfer of substantially the same property.

What is an off the plan purchase agreement?

An off the plan purchase agreement means an agreement for the sale or transfer of land on which a residence is to be erected or developed before completion of the sale or transfer.

Can I get HCAP on a farming property?

Yes, provided there is a new home on the land.

Can I get HCAP on a purchase off the plan?

An off the plan purchase will be eligible only if the agreement states that it must be completed before 30 June 2011 or in any other case, the agreement is completed before 30 June 2011. The Chief Commissioner does have the discretion to allow a later date for completion where the delay is caused by circumstances beyond the control of the parties.

What is an exclusive occupancy?

Land is an exclusive occupancy only if the Chief Commissioner is satisfied that the person acquiring the land will be entitled to occupy a home that is built, or being built, on the land as a place of residence to the exclusion of other persons who occupy or are to occupy the other home or homes built or being built on the parcel of land.

Can I apply for HCAP on a substantially renovated home?

Yes.

What is a substantially renovated home?

For the purpose of HCAP a home is a substantially renovated home if:

• the home is new residential premises within the meaning of section 40-75(1)(b) of the A New Tax System (Goods and Services Tax) Act 1999 and

• the home, as renovated, has not been previously sold or occupied as a place of residence.

How will the reduction in duty be calculated if I buy more than one new home?

If an eligible agreement or transfer is aggregated with other dutiable transactions, and treated as a single dutiable transaction, the 50% reduction is to be applied only to the duty that would be chargeable (in the absence of aggregation) on the eligible agreement or transfer.

Example:

A person buys two new homes, each with a value of $600 000 under different agreements for sale. While the agreements qualify for HCAP, they will also be treated as one agreement under section 25 of the Duties Act 1997. The reduction in duty will be calculated on each new home as if they were not aggregated (duty on $600 000 is $22 490. A saving of $11 245 will apply to each purchase).

The reduction in duty for both new homes is then deducted from the duty that would be payable if HCAP did not apply (duty on $1 200 000 is $51 490). This results in duty of $29 000 being payable ($51 490 - $11 245 - $11 245).

Does HCAP apply to new units and apartments?

Yes. Units and apartments are considered as homes.

Can I get HCAP on the building of a new home on land that I own?

No. A comprehensive home building contract is not liable for duty under the Duties Act 1997.

Can I get HCAP on a house and land package?

If the agreement is for the purchase of a new house and land package and duty is payable on the value of the house and land, HCAP may apply.

Can I get HCAP if I am an owner/builder?

No. An owner builder does not pay duty under the Duties Act 1997 on the building of the home.

Can I get HCAP on the purchase of vacant land?

No. HCAP only applies to agreements for sale or transfer of new homes.

Can a home still be a new home even if it was completed some time ago?

Yes as long as it is the first sale of the home and the home has never been occupied as a place of residence.

I have previously received the First Home Owner Grant on another property. Can I still get HCAP on the purchase of new property?

Yes

What evidence will be required to show that the new home is ready for occupation?

You may be asked to provide a certificate of occupation for the property.

How do I apply for HCAP?

An application form will be available on our website prior to 1 July 2009.