Division 1B NSW Home Builders Bonus
(1) The scheme established by this Division is intended to provide an exemption from or reduction in duty in respect of the purchase or construction of a new home.(2) For the purposes of this Division, a new home is a home that has not been previously occupied or sold as a place of residence.
87L Relevant dates for eligibility
(1) The following agreements or transfers are eligible for consideration under the scheme:(a) agreements for sale or transfer of dutiable property entered into on or after 1 July 2010 and before 1 July 2012,(b) transfers of dutiable property that occur on or after 1 July 2010 and before 1 July 2012 (other than transfers made in conformity with an agreement for sale or transfer entered into before 1 July 2010).(2) An agreement for the sale or transfer of dutiable property is not eligible if:(a) it replaces an agreement made before 1 July 2010, and(b) the replaced agreement was an agreement for the sale or transfer of substantially the same dutiable property.
87M Types of agreements or transfers that are eligible
(1) The following types of agreement or transfer are eligible under the scheme:(a) a new home purchase,(b) an off the plan purchase,(c) a vacant land purchase.(2) A new home purchase is an agreement for the sale or transfer, or a transfer, of land that is the site of a new home that is complete and ready for occupation.(3) An off the plan purchase is an agreement for the sale or transfer of land intended to be used as the site of a new home, which is to be built before completion of the agreement.(4) A vacant land purchase is an agreement for the sale or transfer, or a transfer, of vacant land that is intended to be used as the site of a new home and which is not an off the plan purchase.(5) The agreement or transfer must be for the whole of the land or, if the land is a parcel of land on which 2 or more homes are built, or are being built, for that part of the land that is an exclusive occupancy.(6) 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.(7) In relation to a new home purchase or off the plan purchase only, a reference in this Division to a new home includes a reference to a substantially renovated home.(8) For the purposes of this Division, a substantially renovated home is a renovated home:(a) that 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 of the Commonwealth, and(b) that, as renovated, has not been previously occupied or sold as a place of residence.
87N Restrictions on eligibility
(1) An agreement or transfer is not eligible if the new home, or the land on which the new home is located or to be built, is intended to be used, or made available for use, for any purpose that is not ancillary to the use and occupation of the land for residential purposes (such as a commercial, industrial or professional purpose).(2) However, an agreement for the purchase, or a transfer, of a farming property on which there is a new home or on which a new home is to be constructed is not excluded.(3) For a vacant land purchase, the agreement or transfer is not eligible unless the laying of the foundations for the home commences:(a) within 26 weeks after the agreement for sale or transfer is completed or, in the case of a transfer executed otherwise than in conformity with an agreement for sale or transfer, the transfer occurs, or(b) within any longer period allowed by the Chief Commissioner.
87P Cap on dutiable value of transaction
The dutiable value of the dutiable property that is the subject of the agreement or transfer must not exceed:(a) $600,000 in the case of a new home purchase or an off the plan purchase, or(b) $400,000 in the case of a vacant land purchase.
87Q Duty concessions available if application approved
(1) The following duty concessions are available in relation to an eligible agreement or transfer that is approved under the scheme:(a) a pre-construction duty exemption,(b) a senior’s principal place of residence duty exemption,(c) a post-construction duty reduction.(2) If a pre-construction duty exemption or senior’s principal place of residence duty exemption applies to the agreement or transfer, no duty is chargeable on the agreement or transfer.(3) No duty is chargeable on a transfer of dutiable property (including a transfer made on or after 1 July 2012) if the transfer is made in conformity with an eligible agreement approved under the scheme and the pre-construction duty exemption or senior’s principal place of residence exemption applies to the agreement.(4) If a post-construction duty reduction applies to the agreement or transfer, the amount of ad valorem duty chargeable on the agreement or transfer is to be reduced by 25%.
87R Pre-construction duty exemption
(1) A pre-construction duty exemption applies to an off the plan purchase that is approved under the scheme if, at the time that the off the plan purchase is entered into, construction of the new home under the off the plan purchase has not commenced.(1A) A pre-construction duty exemption applies to an off the plan purchase that is approved under the scheme if the off the plan purchase replaces another off the plan purchase that was approved under the scheme, and to which the pre-construction duty exemption applied, whether or not construction has commenced.(2) A pre-construction duty exemption applies to a vacant land purchase that is approved under the scheme if, at the relevant date, construction of the new home on the land concerned has not commenced.(3) The relevant date is the date the agreement for sale or transfer of the vacant land is entered into or, in the case of a transfer executed otherwise than in conformity with an agreement for sale or transfer, the date the transfer occurs.(4) Construction of a new home commences when the laying of the foundations of the new home, or of the building in which it is located, begins, subject to this section.(4A) If an off the plan purchase relates to a new home that is to be constructed as part of a staged development, construction of the new home commences when construction of the first residential level of the building in which the new home is located begins.(4B) For the purposes of this section:(a) a new home is to be constructed as part of a staged development if the new home is part of a development that will comprise 2 or more multi-storey buildings that have common foundations, and which are to be constructed in separate stages, and(b) a residential level of a building is any level of the building that is to be used as a place of residence.(5) For a new home that is a substantially renovated home, construction of the new home is taken to commence when construction of any new or replacement parts of the home, or of the building in which it is located, begins. Demolition work does not count as construction work.(6) A pre-construction duty exemption also applies to an off the plan purchase that is approved under the scheme if:(a) construction of the new home commenced when the land was owned by a person who is not the vendor under the off the plan purchase, and(b) no more than 25% of the construction work required to construct the new home, or the building in which it is located, has been completed, and(c) no construction work in relation to the new home has been carried out between the date that the vendor acquired the land and the date the off the plan purchase was entered into.
87S Senior’s principal place of residence duty exemption
(1) A senior’s principal place of residence duty exemption applies to a new home purchase or an off the plan purchase that is approved under the scheme if the purchase is made in connection with a residence relocation by an eligible senior.(2) For the exemption to apply, the purchaser or transferee under the relevant agreement or transfer must be an eligible senior.(3) If there is more than one purchaser or transferee under the agreement or transfer, each purchaser or transferee must be:(a) an eligible senior, or(b) a spouse of an eligible senior who is another purchaser or transferee under the agreement or transfer.(4) No other purchasers or transferees are permitted.(5) A purchase is made in connection with a residence relocation by an eligible senior if the home sale requirements and the home occupation requirements for the senior’s principal place of residence duty exemption are met.(6) For the purposes of this Division, a person is an eligible senior if:(a) the person is 55 years of age or older, and(b) the person is an Australian citizen or permanent resident, and(c) neither the person, nor the person’s spouse (if any), has previously had the benefit of the senior’s principal place of residence duty exemption.(6A) However, a person who is under the age of 65 years is not an eligible senior unless the relevant agreement or transfer is a complying agreement or transfer that is eligible for consideration under the scheme.(6B) A complying agreement or transfer is:(a) an agreement for sale or transfer of dutiable property entered into on or after 1 July 2011, or(b) a transfer of dutiable property that occurs on or after 1 July 2011 (other than a transfer made in conformity with an agreement for sale or transfer entered into before 1 July 2011).(6C) An agreement for sale or transfer of dutiable property is not a complying agreement or transfer if:(a) it replaces an agreement made before 1 July 2011, and(b) the replaced agreement was an agreement for the sale or transfer of substantially the same dutiable property.(7) A person has previously had the benefit of the senior’s principal place of residence duty exemption if the person is or was a purchaser or transferee under an agreement or transfer relating to another home, to which the senior’s principal place of residence duty exemption has been applied.
87T Home sale requirements—senior’s principal place of residence duty exemption
(1) The requirements of this section are the home sale requirements for the senior’s principal place of residence duty exemption.(2) An eligible senior who is a purchaser or transferee under the agreement or transfer must, within 12 months before the agreement or transfer is entered into or occurs, be the owner of an eligible home used and occupied by the eligible senior as a principal place of residence (the former home).(3) The eligible senior must:(a) have disposed of the former home before the agreement or transfer was entered into or occurred, or(b) dispose of the former home within the period allowed for residence relocation.(4) The period allowed for residence relocation is 6 months after completion of the relevant agreement or transfer, or such longer period as the Chief Commissioner may approve.(5) The Chief Commissioner may approve a longer period for residence relocation only if satisfied that the delay in disposing of the former home is caused by circumstances beyond the control of the eligible senior.(6) For the purposes of this section, an agreement or transfer is completed when a purchaser or transferee becomes entitled to possession of the home and, if the interest in the land acquired by the purchaser or transferee is registrable under a law of the State, the interest is so registered.(7) The requirements of this section with respect to the disposal of a former home also apply to any spouse of the eligible senior who is an owner of the former home.(8) In this section:eligible home means a home affixed to land in New South Wales.
87U Home occupation requirements—senior’s principal place of residence duty exemption
(1) The requirements of this section are the home occupation requirements for the senior’s principal place of residence duty exemption.(2) The new home must be occupied by an eligible senior who is a purchaser or transferee under the agreement or transfer as a principal place of residence for a continuous period of at least 12 months, with that occupation starting within 12 months (or such longer period as the Chief Commissioner may approve) after completion of the agreement or transfer.(3) For the purposes of this section, an agreement or transfer is completed when a purchaser or transferee becomes entitled to possession of the home and, if the interest in the land acquired by the purchaser or transferee is registrable under a law of the State, the interest is so registered.(4) The Chief Commissioner may, if satisfied that there are good reasons to do so in a particular case:(a) modify the home occupation requirements by approving a shorter period of occupation by an eligible senior, or(b) exempt an eligible senior from the requirement to comply with the home occupation requirements.(5) The requirements of this section with respect to the occupation of the new home by an eligible senior also apply to the eligible senior’s spouse (if any).
87V Post-construction duty reduction
(1) A post-construction duty reduction applies to an agreement or transfer that is approved under the scheme if neither the pre-construction duty exemption nor the senior’s principal place of residence duty exemption applies to the agreement or transfer.(2) The duty reduction is to be applied to the ad valorem duty that would be charged under section 32, and cannot be combined with any other reduction that applies under this Act (such as under the First Home—New Home scheme in Division 1).(3) If the agreement or transfer approved under the scheme is aggregated with other dutiable transactions, and treated as a single dutiable transaction under section 25, the 25% reduction is to be applied only to the ad valorem duty that would be chargeable (in the absence of aggregation) on the approved agreement or transfer.
(1) An application under this Division is to be made to the Chief Commissioner in an approved form.(2) An application must be made within 3 months after the relevant agreement for sale or transfer is entered into or, in the case of a transfer executed otherwise than in conformity with an agreement for sale or transfer, within 3 months after the transfer occurs.(3) The Chief Commissioner may accept an application after expiry of the 3-month period if satisfied that the delay in making an application was caused by circumstances beyond the control of the applicant or applicants.(4) The Chief Commissioner may at any time (whether before or after the approval of an application) require the applicant or applicants to provide such further information as the Chief Commissioner may consider necessary for the proper administration of the scheme.
87X Application may be approved in advance
The Chief Commissioner may approve an application in relation to any agreement or transfer in anticipation of compliance with any of the requirements of this Division.
87Y Reassessment of duty payable where duty concession wrongly applied
(1) The Chief Commissioner may reassess the duty chargeable in respect of an agreement or transfer that is initially approved under the scheme if the Chief Commissioner forms the opinion that the agreement or transfer is not eligible under the scheme, including in a case where approval was given in anticipation of compliance with any requirements of this Division that have not been met.(2) The Chief Commissioner may issue a notice of assessment, based on the reassessment, for the duty chargeable in respect of the agreement or transfer.
87Z Charge on land for duty liability of applicant
(1) Any duty liability that an applicant has under the scheme in respect of an agreement or transfer is a charge on the applicant’s interest in the land that is the subject of the agreement or transfer.(2) An applicant has a duty liability under the scheme in respect of an agreement or transfer if the applicant is required to pay an amount of duty to the Chief Commissioner, in respect of an agreement or transfer that is initially approved under the scheme, under a notice of assessment referred to in section 87Y.(3) The charge created by this section gives the Chief Commissioner an interest in the land and, accordingly, the Chief Commissioner may lodge a caveat in respect of the land under the Real Property Act 1900 to protect that interest.(4) The caveat must be withdrawn when the amount of the duty liability has been paid.(5) The amount of the duty liability is the amount of duty that the applicant is required to pay to the Chief Commissioner in respect of the relevant agreement or transfer, together with any interest or penalty tax payable.(6) In this section:applicant includes a former applicant.
87ZAA Replacement agreements—off the plan purchases
(1) An application may be made under the scheme in relation to an off the plan purchase entered into on or after 1 July 2012 if the off the plan purchase replaces an off the plan purchase that was approved under the scheme.(2) The replacement off the plan purchase is taken to be eligible for consideration under the scheme, despite section 87L.
(1) In this Division:eligible senior—see section 87S.
home means a building (affixed to land) that:
(a) may lawfully be used as a place of residence, and(b) is, in the Chief Commissioner’s opinion, a suitable building for use as a place of residence.new home—see section 87K.
new home purchase—see section 87M.
off the plan purchase—see section 87M.
spouse has the same meaning in relation to the scheme as it has under section 71 (4) and (5) in relation to the First Home—New Home scheme.
vacant land purchase—see section 87M.
(2) For the purposes of this Division, a person disposes of a home if the person ceases to be the owner of the home.(3) For the purposes of this Division, a person is the owner of a home if the person is the owner (within the meaning of the Land Tax Management Act 1956) of land that is the site of the home.(4) For the purposes of this Division, an off the plan purchase replaces another off the plan purchase only if the agreements concerned relate to substantially the same property and have the same purchaser or purchasers.