Duties Amendment (NSW Home Builders Bonus) Act 2010 (NSW)

An Act to amend the Duties Act 1997 to make further provision in respect of the NSW Home Builders Bonus.

1Name of Act

This Act is the Duties Amendment (NSW Home Builders Bonus) Act 2010.

2Commencement

This Act commences, or is taken to have commenced, on 1 July 2010.

Schedule 1Amendment of Duties Act 1997 No 123[1]Section 87N Restrictions on eligibility (as inserted by the State Revenue Legislation Amendment Act 2010)

Insert after section 87N (2):

(3)

For a vacant land purchase, the agreement or transfer is not eligible unless the laying of the foundations for the home commences:

• (a)

  within 26 weeks after the agreement for sale or transfer is completed or, in the case of a transfer executed otherwise than in conformity with an agreement for sale or transfer, the transfer occurs, or

• (b)

  within any longer period allowed by the Chief Commissioner.

[2]Section 87O Completion requirements

Omit the section.

[3]Section 87R Pre-construction duty exemption

Insert after section 87R (1):

(1A)

A pre-construction duty exemption applies to an off the plan purchase that is approved under the scheme if the off the plan purchase replaces another off the plan purchase that was approved under the scheme, and to which the pre-construction duty exemption applied, whether or not construction has commenced.

[4]Section 87R (4)–(4B)

Omit section 87R (4). Insert instead:

(4)

Construction of a new home commences when the laying of the foundations of the new home, or of the building in which it is located, begins, subject to this section.

(4A)

If an off the plan purchase relates to a new home that is to be constructed as part of a staged development, construction of the new home commences when construction of the first residential level of the building in which the new home is located begins.

(4B)

For the purposes of this section:

• (a)

  a new home is to be constructed as part of a staged development if the new home is part of a development that will comprise 2 or more multi-storey buildings that have common foundations, and which are to be constructed in separate stages, and

• (b)

  a residential level of a building is any level of the building that is to be used as a place of residence.

[5]Section 87R (6)

Insert after section 87R (5):

(6)

A pre-construction duty exemption also applies to an off the plan purchase that is approved under the scheme if:

• (a)

  construction of the new home commenced when the land was owned by a person who is not the vendor under the off the plan purchase, and

• (b)

  no more than 25% of the construction work required to construct the new home, or the building in which it is located, has been completed, and

• (c)

  no construction work in relation to the new home has been carried out between the date that the vendor acquired the land and the date the off the plan purchase was entered into.

[6]Section 87ZAA

Insert after section 87Z:

87ZAAReplacement agreements—off the plan purchases(1)

An application may be made under the scheme in relation to an off the plan purchase entered into on or after 1 July 2012 if the off the plan purchase replaces an off the plan purchase that was approved under the scheme.

(2)

The replacement off the plan purchase is taken to be eligible for consideration under the scheme, despite section 87L.

[7]Section 87ZA Definitions

Insert after section 87ZA (3):

(4)

For the purposes of this Division, an off the plan purchase replaces another off the plan purchase only if the agreements concerned relate to substantially the same property and have the same purchaser or purchasers.