First home buyers and the construction industry will be the big winners under a targeted boost, which will eliminate stamp duty on newly-built homes below A$800,000 and slash thousands of dollars for properties up to A$1 million – today’s update on NSW Stamp Duty by NSW Premier Gladys Berejiklian.
Under the changes, the threshold above which stamp duty will be charged on new homes for first home buyers will increase from the current A$650,000 to A$800,000, with the concession reducing on higher values before phasing out at A$1 million. The government forecasts more than 6000 first home buyers will benefit from the changes, saving eligible first home buyers thousands of dollars.
Under the changes, the stamp duty threshold on vacant land will rise from A$350,000 to A$400,000 and will phase out at A$500,000. The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for a 12-month period, commencing on 01 August 2020. Other purchases will continue to benefit from existing schemes. NSW Treasurer Dominic Perrottet said the changes would save first home buyers stamp duty of up to A$31,335 on a new A$800,000 home.
The NSW Government will also continue to offer a A$10,000 First Home Owner Grant, which is available to people buying a new first home worth no more than A$600,000, or buying land and building a new first home worth no more than A$750,000 in total. This means the maximum amount of benefit a homeowner could be entitled to be A$32,335 if purchasing a new home and accessing the grant. At Move Realty, we offer new homes (Guildford, Schofields, and many more) so that buyers can avail these benefits.
An indicative tax threshold changes are listed in the table below:
More information on the first home buyer assistance schemes will become available on NSW Revenue.