Current Home Buyer Incentives available in Western Australia

To help you understand the current incentives available as part of both the Federal Government and the WA Government’s $125 million stimulus package, we have listed the different grants available with some information to help consider which options may be right for your situation.

The three grants all have different eligibility criteria and only Australian Citizens are eligible for the $25,000 Federal Government HomeBuilder Grant. There are contractual time limitations that require fulfilment that must be adhered to.

The Western Australian State Government is offering both a $10,000 First Home Owners Grant and the $20,000 Building Bonus Grant, both of which are open to Australia Citizens and Permanent Residents who reside in Western Australia.

This means, as a prospective homebuyer residing in WA, there are currently three grants available.

• For first home buyers, you may be eligible for a total of $55,000 assistance
• As a subsequent home buyer, you may be eligible for a total of $45,000 assistance
• As an investor, you may be eligible for a total of $20,000 assistance

What are the different grants available?

The Australian Copyright Council states the following:

“House plans, including those produced by project home companies, are protected by copyright.

Generally, a person who commissions someone to draw up a house plan will have an implied licence to construct a building based on the plan.

Ideas, styles and techniques are not protected by copyright, it is the form in which a particular plan expresses an idea or style that is protected.”

But what does this actually mean?

The $10,000 WA Government First Home Owners Grant, WA Residents only

• Available to both Australian Citizens and Permanent Residents who reside in WA over the age of 18, although those under 18 may apply for an exemption
• Can be used towards building or buying a new residential property that is your main place of residence
• Is not means-tested
• Applicants and their spouses/ de-factos must not have previously owned property.
• Capped at $750,000 South of the 26th parallel (Perth Metro) and $1,000,000 North of the 26th parallel.

More information on FHOG eligibility can be found here.

The $20,000 WA Government Building Bonus Grant, WA Residents only

• Available to both owner-occupiers and investors
• No caps on property value
• Not means tested
• Also available to homebuyers purchasing a residences in single-storey developments, including townhouses, already under construction
• Available to both Australian Citizens and Permanent Residents who reside in WA over the age of 18

More information on the Building Bonus Grant eligibility can be found here.

The $25,000 Federal Government HomeBuilder Grant

• For new builds and substantial renovations by owner-occupiers
• Available to both first time and subsequent home buyers
• Applicants must spend at least $150,000 towards an eligible renovation before a grant is approved.
• Subject to a property value cap
• New builds capped at $750,000
• Renovations approved between $150,000 and $750,000, but the property value must not exceed $1,500,000
• Not available to be used towards investment properties
• Not available to owners who are building or renovating without hiring builders
• Subject to a household based income cap
• Income capped at $125,000 for a single income household
• Income capped at $200,000 for a dual income household
• Must sign a contract with a builder before December 31^st, 2020
• Must commence building within 3 months of the contract date
• Available to Australian Citizens over the age of 18
• Not available to Permanent Residents
• Available to individuals, unavailable to a company or trust.

More information on the Federal Government HomeBuilder Grant can be found here.

Stamp Duty Exemptions

As a first home buyer in WA, it is also worth noting that you will be exempt from having to pay stamp duty on properties valued at under $430,000, as long as the property is also your main residence.

This stamp duty exemption also applies to empty land plots valued under $300,000.

Concessional stamp duty rates can be applied to properties valued above $430,000 up to and amount of $530,000, as well as empty land plots valued between $300,000 and $400,000,

Exemptions may also be eligible between spousal transfers and family owned farming properties.

The existing stamp duty rebate has now also been extended to apply to apartments that are currently unsold.

Please check further details in the links provided, or get in touch with DN Studio to have a chat about the extra financial assistance that may be available to help you start sooner on your new home or investment project.

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