Finance
Goodbye stamp duty! NSW cuts stamp duty for first home buyer homes under $800k
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The New South Wales Premier Gladys Berejiklian has announced temporary changes to stamp duty fees for first home buyers. This change is aimed at supporting new home construction, boosting jobs in the building industry and helping prospective homeowners get a foot on the property ladder.
The state government expects more than 6,000 first home buyers to benefit from these temporary changes, saving eligible first home buyers thousands of dollars, up to $31,335.
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What are the NSW stamp duty changes?
Effective August 1, the threshold above which stamp duty will be charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million.
The stamp duty threshold for vacant land will rise from $350,000 to $400,000 and will phase out at $500,000.
What’s the eligibility criteria for the new NSW stamp duty exemption?
- Available to first home buyers only
- Property must be a new build
- Property price cannot exceed $800,000
- Stamp duty concessions available for new homes under $1 million
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Keep in mind
- The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes
- It will last for a 12-month period, commencing on 1 August 2020
NSW stamp duty tax threshold changes
| Property type | Existing stamp duty amount for eligible first home buyers | New stamp duty amount for eligible first home buyers | Saving |
|---|---|---|---|
| Vacant Land $350,000 | $0 | $0 | no change |
| Vacant Land $400,000 | $7793 | $0 | $7793 |
| New home $650,000 | $0 | $0 | no change |
| New home $700,000 | $10,445 | $0 | $10,445 |
| New home $800,000 | $31,335 | $0 | $31,335 |
| New home $900,000 | $35,835 | $20,168 | $15,668 |
| Existing home $650,000 | $0 | $0 | no change |
| Existing home $800,000 | $31,335 | $31,335 | no change |
Can you qualify for both the NSW stamp duty exemption and other schemes and grants?
Yes.
What other grants and schemes could you qualify for?
As a first home buyer, there are a number of grants you could potentially qualify for.
- The First Home Loan Deposit Scheme allows buyers who have as little as a 5% deposit to avoid paying Lenders Mortgage Insurance.
- Depending on where you live, buyers could also access the First Home Owner Grant. While these do come with strict criteria it could unlock an extra $10,000 for prospective buyers.
- The HomeBuilder Grant is a $25,000 grant available to homeowners who wish to renovate or build a new home.
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The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.
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Tags: rba cash rate, reserve bank, interest rate, new purchase
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