Stamp Duty Concession for First Home Buyers in NSW

Martin Spiers - Thursday, October 05, 2017

The NSW government has announced stamp duty relief for first home buyers, which is to take effect from 1 July 2017.

For homes up to $650,000 (new and existing), the stamp duty will be scrapped. For new and existing homes costing more than $650,000 but less than $800,000, the stamp duty would be reduced. This is a change from the previous assistance packages whereby support was only provided for new properties.

Also scrapped is the stamp duty on lenders mortgage insurance, which many first home buyers have to pay because of the amount that they borrow in comparison to the home’s value.

First home buyers who build a new home will receive a grant of up to $10,000 for homes worth up to $750,000. For those first home buyers who buy a new property worth up to $650,000, a similar grant amount will also be available.

To fund these new concessions, the NSW government will increase the Foreign Investor Surcharge Duty from 4% to 8%, and the land tax surcharge on foreign buyers will rise from 0.75% to 2% per annum. Additionally, the government will also scrap the 12 months stamp duty deferral scheme for investors in off-the-plan properties.

To find out more, please contact our friendly team at H & M Accountants.