Hi all. Just need some advise. Currently helping my brother buy his 1st home. We saw a place he likes so thinking of making an offer. The place is 1 year old, never been sold before but is currently rented out. The thing we are confused about is if the house is classified as new or established. Have looked at a few places online i cluding ATO website wherein the definition of new house is A. Never been sold B. Less than 5 years old. Addtional search from fhog websites add that definition as "never been occupied as residence" (does this mean claimed as PPOR?) Will my brother be able to apply for the new home grant?
FHOG is state legislation so best to look at the SRO or OSR in the state of the house ATO info is irrelevant. Sounds like you may have found the definition for GST law.
There is the grant (FHOG) then there is the stamp duty concession (also called First Home Owner Rate or FHOR). The grant in WA is $10k for new properties and $0 for established. The stamp duty concession has a limit in the value of the purchase but doesn't matter if new or established. Best reading is http://www.finance.wa.gov.au/cms/uploadedFiles/_State_Revenue/FHOG/FHOG-Guide.pdf if you haven't read it. My best guess is that he wouldn't be eligable for FHOG as it's not new but as long as he moves in within 12mths (ie when tenant leaves) then he could get FHOR, However as it's never been sold there might be a glimmer of hope. Best to call the OSR and get some advice.
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