Hi All, My brother bought off the plan 18 months ago but settled only 3 months ago. Now he has received an offer to work in USA on a project with 3 year initial contract with potential extension and wants to sell the townhouse.I wanted to know if you are selling your PPR within 12 months after settlement, do you have to pay the FHOG / Stamp Duty back to the SROV? Regards, Joel
Take this as anecdotal, rather than absolute advice... My understanding is that if you have to sell the property or other things occur so that you can't meet the first home buyer obligations, you're required to pay the stamp duty and pay back the grant (return what ever benefits you enjoyed). The good news is, that if you're upfront about this, you're probably still eligible for those benefits at a later date when you do purchase a home and can meet the obligations. This is anecdotal, I've only heard this through third parties so it would be best to contact the office of state revenue and get their response. I'd try to do it in writing. Also do it on behalf of your brother, rather than have your brother do it directly.
When a property is sold the land tax clearance process also looks at FHOGs. The overclaimed FHOG is likely always a personal liability in any event. eg If they dont pick it up until later. The timing of when he moves out will also be important. Newly built property requires occupancy for three months minimum or the main residence concession is lost. The issue of the absence from Australia for 3 years could also expose him to a CGT problem that may or may not become law. It could see the main residence exemption lost !! He needs to understand how that works + timing of the sale needs to address that.
