On 8 June 2010, the NSW Government introduced a Bill that, if
passed, will introduce stamp duty concessions on the purchase of
new houses. The concessions will begin on 1 July 2010 and will end
on 1 July 2012.
A sale agreement will not be eligible if it is made
before 1 July 2010 or it replaces an agreement that was made before
The scheme applies to three types of purchase:
purchases of completed new homes that are ready for immediate
off the plan purchases; and
vacant land purchase that is intended to be used as the site of
a new home (and which is not an off the plan purchase).
For the purposes of the concession, a new home is a home that
has not been previously sold or occupied as a residence and may
include a home that has been substantially renovated.
To be eligible for the concessions, the new home must be
intended to be used exclusively for residential purposes (or
purposes ancillary to its use as a residence or as a residence on a
farming property). In addition, the value of the property must not
$600,000 for a new home or an off the plan purchase; or
$400,000 in the case of vacant land.
Finally, there are time limits on when the construction works
must be carried out in relation to vacant land and off the plan
purchases. Off the plan purchases are only eligible for the
concessions if completed:
if the purchase contract is entered into between 1 July 2010
and 30 June 2011 – by 31 December 2012; and
otherwise – by 31 December 2013.
For vacant land purchases, the foundations must be laid within
26 weeks and the works must be completed within 18 months after the
laying of the foundations for the home begins (or such longer
period as the OSR allows).
There are three types of concession under the scheme,
a pre-construction duty exemption;
a senior's principal place of residence duty exemption;
a post-construction duty reduction.
1. Pre-construction duty exemption
No duty is payable on a purchase agreement (or transfer) if the
pre-construction duty exemption applies. The exemption applies to
off the plan purchases or vacant land purchases if:
the eligibility criteria set out above is satisfied; and
construction of the new home has not commenced when the
purchase agreement is entered into or when the transfer
2. Senior's principal place of residence duty
No duty is chargeable on a purchase agreement (or transfer) if
the senior's principal place of residence duty exemption
applies. This exemption applies to a new home purchase or an off
the plan purchase if the purchase is made in connection with a
residence relocation by an eligible senior.
A person is an eligible senior if the person is at lest
65 years old, is an Australian citizen or permanent resident and
neither the person, nor his or her spouse (if any), has previously
had the benefit of the senior's principal place of residence
duty exemption. If there is more than one purchaser then each of
them must be an eligible senior. No other purchasers are
The eligible seniors must sell, or have sold, their previous
home and occupy the new home as their principal place of residence.
The previous home must be sold either:
within 12 months before the eligible purchase agreement;
within 6 months after completion of the eligible purchase
The previous home must have been affixed to land in New South
Wales and the new home must be occupied as the purchaser's
principal place of residence for a continuous period of at least 12
months, with that occupation starting within 12 months after
completion of the eligible purchase agreement.
3. Post- construction duty reduction
The post-construction duty reduction results in a 25% reduction
in duty. The reduction applies to any other agreement or transfer
approved under the scheme that is not eligible for the
pre-construction duty exemption or the senior's principal place
of residence duty exemption.
Many retail leases include a covenant to trade, requiring the tenant to open the premises for trade during certain hours.
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