What Has Changed?
Prior to 6 December 2024, Buyers of Property who were claiming the Home or First Home concession were at risk of losing their transfer duty concession if they disposed of the property (including but not limited to sell, transfer, rent or grant exclusive possession of the property).
Pursuant to recent changes, first home buyers and buyers who are buying a home to live in can rent out one or more rooms while maintaining their concessions if they meet certain eligibility criteria which we summarise as follows –
- You must acquire the property as an individual (and not through some other entity such as a company);
- You must move into the property with your personal belongings and live there on a daily basis within 1 year of settlement for at least 12 months;
If you have claimed the concession;
- You can rent out rooms during this period, as long as:
(a) Before you move in: You are not able to lease, rent or otherwise grant exclusive possession of all or part of the property before you move in.
(b) After you move in:
You are able to lease, rent or otherwise grant exclusive possession of part of the property, providing that the lease arrangement starts on or after 10 September 2024 and you continue to live in the property. Where the lease arrangement starts before this date, you may lose the concession.
You are not able to lease, rent or otherwise grant exclusive possession of all of the property within 1 year after you move into the property.
Unlike the First Home concession, you can claim the home concession and save up to $7,175 even when you have owned a home before.
If there are any existing tenants in the Property at Settlement, they must move out when their lease expires or within 6 months of settlement, whichever is the earlier, for a Buyer to stay eligible for the concession. Previous owners who continue to stay in the property must also move out within 6 months.