What?
On 27 July 2020, NSW Premier Gladys Berejiklian announced that first home buyers would be given greater stamp duty relief. As part of the NSW Government’s COVID-19 Recovery Plan, the change aims to stimulate the property and construction industry which is responsible for keeping one in four of NSW’s workforce employed.
Additionally, NSW Treasurer Dominic Perrotet stated that the initiative will encourage those considering entering the housing market to make smarter choices, enabling them to save money now and better position themselves for a stable financial future.
Who benefits?
First home buyers that purchase a property between 1 August 2020 and 31 July 2020 for a sale price between $650,000 and $1,000,000.
How?
Previously, stamp duty was not required to be paid on properties purchased for up to $650,000. Properties up to $800,000 were subject to a reduced rate of duty. For 12 months from 1 August this year, properties purchased for up to $800,000 will have their stamp duty waived, and properties sold above $800,000 for up to $1,000,000 will be subject to the reduced rate.
This stamp duty threshold shift will also apply to vacant land, with the full relief limit moving from $350,000 to $400,000, as well as a reduced rate applying to properties purchased for up to $500,000. However, buyers must intend to build and live in a new home on that land for the relief to apply.
The changes do not displace or effect existing benefits that are currently in place to support first home owners. This means that a buyer purchasing a property for up to $600,000 could experience a $32,335 benefit between the stamp duty relief and the $10,000 First Home Owner Grant.
The NSW Government hopes to see up to 6,000 home buyers benefit from the scheme.
For further information about the NSW first home buyer relief plan, or to discuss purchasing your first home, please contact us at 1300 892 237 or
[email protected]. We provide free contract reviews for first home buyers so please reach out for a complimentary contract review before you commit to purchasing your next home.