Key definitions and eligibility criteria

Administration

The Chief Commissioner of State Revenue (Chief Commissioner) administers the Shared Equity Home Buyer Helper. This Chief Commissioner is responsible for confirming participation in the initiative and managing the ongoing relationship with participants.

Application arrangements

Your circumstances determine how you can apply for the Shared Equity Home Buyer Helper.

• Single applications
  • You must be single – no spouse – to make a single application for the Shared Equity Home Buyer Helper.
• Joint applications
  • Couples – married or de facto – must make a joint application for the Shared Equity Home Buyer Helper.
  • Only couples can make a joint application to the initiative – no other relationship type is eligible.

This is separate to how you apply for your home loan with the bank – a couple can still access the Shared Equity Home Buyer Helper even if only one person applies for the home loan.

Maximum home purchase price

The maximum amount you can pay for a home when accessing the Shared Equity Home Buyer Helper depends on where the property is located.

• $950,000 in Sydney and major regional centres (Newcastle & Lake Macquarie, Central Coast, Illawarra and North Coast of NSW), or
• $600,000 in other regional areas of NSW.

How are these areas defined?

To determine the maximum amount you can pay for your home the Australian Bureau of Statistics’ Greater Capital City Statistical Area is used to define Sydney (which includes the Central Coast).

Major regional centres of Newcastle & Lake Macquarie and Illawarra align with the ABS’ statistical area level 4 (SA4) definitions. The North Coast of NSW is defined to align with the following ABS SA4 definitions:

• Mid-North coast
• Coffs Harbour-Grafton
• Richmond-Tweed

Contribution amount

The contribution amount is the share of the purchase price we will contribute towards purchasing your home. This amount depends on whether you are a buying a new or existing home.

Gross income

The Shared Equity Home Buyer Helper has the following gross income limits:

• A single person – no more than $90,000
• A couple – no more than $120,000

What is gross income?

You can find your gross income figure on your latest income tax assessment.

Gross income includes:

• assessable income
• exempt income.

Gross income does not include:

• child support
• lump sum workers compensation payments.

Asset limits

The asset limits are based on the property purchase price and vary depending on your age, gross income and if you’ll be making a single or joint application. To be eligible, your financial assets must not exceed the asset limits that apply to you.

• 30% of the property purchase price applies to:
  • joint applicants with a combined gross annual income more than $90,000.
• 45% of the property purchase price applies to:
  • single applicants aged 18 to 49
  • joint applicants with a combined gross annual income up to $90,000.
• 65% of the property purchase price applies to:
  • single applicants aged over 50.

The lender will confirm your assets as part of the application process. They may also determine you are eligible for a standard home loan which means the Shared Equity Home Buyer Helper is no longer required.

What counts as assets?

Financial assets include:

• currency and deposits (cash, savings, gold etc)

• securities and related assets (shares, bonds, investments etc)
• loans and placements
• funds received from superannuation funds but not superannuation investments
• net fixed assets of a business (which excludes trading stock and intangibles)
• luxury items
• any other financial assets that the Chief Commissioner considers to be relevant for determining eligibility.

Normal household assets are excluded unless they are luxury items.

If you have savings over $100,000 they may be directed towards reducing the Government's contribution amount.

Home occupancy

The home you purchase must be your principal place of residence and you must move in at settlement unless the property is subject to a lease entered into by the previous owner or you are building a new home.

Land or property ownership

Current ownership

If you currently own land or property you can’t access the Shared Equity Home Buyer Helper unless you jointly own property with your ex-partner and will use the initiative to purchase their share.

Previous ownership

If you are accessing the initiative solely based on your occupation (a ‘key worker’) you must never have owned land or property in Australia – but if you previously owned real estate overseas, you are still eligible to access the initiative.

If you are a single parent or person over 50 who previously owned land or property you can access the initiative if you don’t own any real estate now.

What is considered ‘land or property’?

Land or property includes land owned:

• in Australia or overseas
• via strata or company title arrangements
• as a shareholder of a corporation
• through a trust
• primary production land.

There are some exclusions:

• shareholdings in organisations listed on a stock exchange that own land
• any land owned indirectly through a widely held managed fund or superannuation scheme
• if you hold land solely as the trustee of a trust or the executor of a will.

Dependent children

A child is considered a dependent person if they are:

• aged under 16, or
• aged 16 to 18 (under 19) and in full-time secondary study, or
• aged 18 to 21 (under 22) and in receipt of a disability support pension under the Social Security Act 1991.

The Chief Commissioner may waive the requirement for a child aged 16 to 18 to be in full-time secondary study.

Your occupation

If you are applying because your occupation makes you eligible as a ‘key worker’, the lender will confirm your qualifications and the relevant award or enterprise agreement you work under to determine if you qualify as a key worker for the purposes of the scheme.  You can be employed on a temporary, permanent, full-time or part-time basis.

Purchasing costs

To access the Shared Equity Home Buyer Helper you need to cover the home purchasing costs. This includes:

• conveyancing
• building and pest inspections
• conveyancing and legal fees
• settlement fees and registration fees.

You must also pay stamp duty, or an annual property tax (if applicable). Visit Calculate your property tax at Service NSW to see if this can be either a lump sum payment or ongoing property tax.

Learn more about upfront costs at Buying a house on the Moneysmart website.

Ongoing obligations and eligibility

The ongoing eligibility criteria for Shared Equity Home Buyer Helper participants are that they continue to:

• occupy the property as a principal place of residence
• be an Australian citizen or permanent resident
• not own additional property
• not exceed the relevant income threshold in two consecutive financial years.

If you no longer occupy the home as your principal place of residence, cease to be an Australian citizen or permanent resident, or acquire additional property you must notify the Chief Commissioner within 3 months.

How is eligibility monitored?

Every 2 to 5 years the Chief Commissioner will review if you are still eligible to access the initiative. A review may also be conducted if we are notified that your circumstances have changed. This could include that the property is no longer your principal place of residence.

What if I am no longer eligible?

If a review finds that you are no longer eligible for the initiative, you may be required to re-finance or make a payment to acquire part or all of the state’s interest in your property, depending on your circumstances.