The first home vacant land concession – can you claim it and what happens after you claim it?

You can claim a first home vacant land concession if:

• You buy vacant land valued less than $400,000
• You are at least 18 years of age
• You have never held an interest in residential land anywhere in the world
• You will build your first home on the land
• You will only build 1 home on the land
• No building, or part of a building is situated on the land when you buy it
• You haven’t received a first home vacant land concession before

After you claim the concession you must:

• build and occupy the home as your first principal place of residence within 2 years after settlement; and
• not sell or lease of all or part of the land before or within 1 year after you start living in the home.

If you don’t meet these obligations then you must apply for a re-assessment of the transfer duty. You then have to pay the transfer duty liability at the investment rate plus any unpaid tax interest and penalty tax depending on your circumstances.