Changes to Stamp Duty Provide Relief for First Home Buyers
Changes to Stamp Duty Provide Relief for First Home Buyers
In a move to try and address the housing affordability crisis, the NSW Government introduced changes to the Stamp Duty payable by first-home buyers that came into effect on 1 July 2017.
Under these changes, first-home buyers will now be exempt from paying Stamp Duty on the purchase of new and existing homes up to the value of $650,000 (previously, only new homes up to $550,000 were exempt from Stamp Duty). In addition, discounts on Stamp Duty will be offered for purchases of new and existing homes to the value of $650,000 - $800,000.
Additional changes that may also assist first-home buyers entering the market include:
• A $10,000 grant for people building new homes up to the value of $750,000
• A $10,000 grant for people buying new homes up to the value of $600,000
• Abolishing stamp duty on lenders' mortgage insurance for first-home buyers (which was previously 9%)
To help pay for the assistance that will be given to first home buyers, and to make it easier for them to compete against investors in the market, the Government will also:
• Double the stamp duty surcharge payable by foreign investors from 4% to 8%
• Increase annual land tax paid by foreign homeowners from 0.75% to 2%
• Abolish the 12 month deferral of duty for residential off-the-plan purchases by investors
If you are a first home buyer, you can find out more about the changes that came into force this year at https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/.
Your property lawyer at CDQ can also guide you through the process of purchasing a property and ensure that you are familiar with any grants, discounts or exemptions that you may be entitled to.
For more information phone us on 02 8566 2400.
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