Australian Capital Territory Numbered Acts

FIRST HOME OWNER GRANT AMENDMENT ACT 2010 (NO. 46 OF 2010) - SECT 7

in division 2.3, insert

13A     First home owner grant cap

    (1)     The first home owner grant cap applies to an eligible transaction with a commencement date on or after 1 January 2011.

Note     The first home owner grant cap does not apply to an eligible transaction that qualifies for the first home owner boost for new homes or established homes. The first home owner boost is available for eligible transactions until 31 December 2009.

    (2)     The amount of the first home owner grant cap is—

        (a)     $750 000; or

        (b)     if another amount is prescribed by regulation—the prescribed amount.

13B     Meaning of total value of eligible transaction etc

    (1)     The total value of an eligible transaction is as follows:

        (a)     for a contract for the purchase of a home, the greater of the following:

              (i)     the consideration for the contract;

              (ii)     the unencumbered value, at the commencement date, of the home;

        (b)     for a comprehensive home building contract, the amount worked out by adding together—

              (i)     the consideration for the contract; and

              (ii)     the value, at the commencement date, of the relevant interest in the land on which the home is to be built;

        (c)     for the building of a home by an owner builder, the amount worked out by adding together—

              (i)     the unencumbered value, at the date the transaction is completed, of the home; and

              (ii)     the value, at the date the transaction is completed, of the relevant interest in the land on which the home is built.

    (2)     The value of the relevant interest in the land on which a home is, or is to be, built is the greater of the following:

        (a)     the consideration paid or payable for the interest;

        (b)     the unencumbered value of the interest.

    (3)     The unencumbered value of a home or relevant interest in land is the value of the home or interest worked out without regard to—

        (a)     any encumbrance to which the home or interest is subject, whether contingently or otherwise; or

        (b)     any arrangement that results in the reduction of the value of the home or interest, if the parties to the arrangement are not dealing with each other at arm's length; or

        (c)     any scheme or arrangement that, in the commissioner's opinion, was entered into, made or carried out by a party to the scheme or arrangement for the main purpose of reducing the value of the home or interest; or

        (d)     if the home or interest is held by a person on trust as guardian for another person who is under a legal disability—any liabilities of the trust, including the liability to indemnify the trustee.

    (4)     For the purposes of subsection (3) (c), the commissioner may consider—

        (a)     the duration of the scheme or arrangement before the commencement date of the transaction to which the home or interest relates; and

        (b)     whether there is any commercial efficacy to the making of the scheme or arrangement other than to reduce the value of the home or interest; and

        (c)     anything else the commissioner considers relevant.