Housing Stimulus Package announced by SA Govt.

This week saw the announcement by Revenue SA of the Housing Stimulus Package to boose the SA Housing Construction Industry.
This time the handounts are available to investors as well as first home buyers...
Below is the actual detail from Revenue SA and as you can see there is no mention of it not being available to people who already own an investment property or two. Still I have sought clarification.

If you are interested in finding out more about the stimulus package and how best to apply it or if you are considering an investment in residential property please give us a call or <click here>

From: DTF:RevSA Taxpayer Education & Communication
Sent: Monday, 15 October 2012 2:50 PM
To: DL:DTF RevSA
Subject: Increased Government Assistance for New Home Buyers

Today, 15 October 2012, the Government announced that they have retargeted their home buyer assistance by:

§         increasing the First Home Owner Grant (FHOG) for new homes from $7000 to $15 000 (ongoing) for contracts entered into on or after 15 October 2012;

§         reducing the FHOG for established homes from $7000 to $5000 for eligible contracts entered into between the date the necessary amending legislation comes into force and 30 June 2014. The FHOG will be abolished for established homes from 1 July 2014; and

§         replacing the $8000 First Home Bonus Grant with a Housing Construction Grant (HCG) of $8500 for all new home construction where contracts are entered into between 15 October 2012 and 30 June 2013 inclusive. The HCG will be available for properties valued up to $400 000, phasing out for properties valued up to $450 000.

First Home Owner Grant

From 15 October 2012, new home purchasers are entitled to a $15 000 FHOG. This measure is ongoing.

Purchasers of established homes will continue to be entitled to a $7000 FHOG until the necessary amending legislation comes into force.

From the date the amending legislation comes into force and 30 June 2014 purchasers of established homes will be entitled to a $5000 FHOG.

From 1 July 2014 no FHOG will be available to purchasers of established homes.

The FHOG property value cap of $575 000 will continue to apply for all FHOG applicants.

Other than the changes above, no other criteria will change.

First Home Bonus Grant

The $8000 First Home Bonus Grant is abolished for all contracts entered into on or after 15 October 2012.

The First Home Bonus Grant will still be available for contracts entered into between 1 July 2012 and 14 October 2012.

Housing Construction Grant

The $8500 HCG is available for new home buyers and owner builders, and, including investors, who are purchasing or building a new home valued up to $400 000, phasing out for properties valued up to $450 000.

The HCG applies to contracts that are entered into between 15 October 2012 and 30 June 2013 and to owner builders where construction of the new home commences on or after 15 October 2012.

The HCG will be available to natural persons, companies and trusts and there is no limit on the number of grants available, regardless of whether a person purchases or builds a new home alone or together with others.

Previous recipients of FHOG grants are also entitled to the HCG on purchasing a new home. First home buyers of a new home will receive both the $15 000 FHOG and the $8500 HCG provided all eligibility criteria are met.

New Home

New Home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home. There is no change to this definition.

Applications

Initially all applications for the HCG (including by first home buyers) will need to be made via RevenueSA. An application form will be available as soon as possible.

Applications for FHOG can still be made via Financial Institutions and it is planned that systems changes to reflect the new arrangements in FHOG online will be in place in the near future.

Internet pages, publications and forms will be updated as soon as possible to reflect the revised arrangements.

Regards

Kristy Ferguson
Manager
Taxpayer Education & Communication
RevenueSA
phone: (08) 8226 0193  fax: (08) 8226 3788
GPO Box 1353, ADELAIDE  SA  5001
Level 2, State Administration Centre, 200 Victoria Square, Adelaide