The NSW State Government has recently announced changes to Stamp Duty provisions for First Home Buyers to come into effect from 1 July 2017.
The new changes will exempt NSW first home buyers from paying stamp duty on existing and new properties that cost up to $650,000. There will also be a discount for purchases up to $800,000.
Currently, first home buyers are only exempt from stamp duty on new homes up to $550,000 with a discounted stamp duty for new homes up to $650,000.
The changes will apply to contracts exchanged on or after 1 July 2017.
Further changes to assist first home buyers to get into the market include:
- Providing a $10,000.00 grant to first homeowners’ for purchasers of new homes up to $600,000 and for builders of new homes up to $750,000.
- Abolishing the 9% stamp duty payable on Lenders’ Mortgage Insurance (LMI) for first home buyers.
- Abolishing the 12 month deferral of duty for residential off-the-plan purchases by investors.
- Doubling the stamp duty surcharge for foreign investors to 8% from the existing 4%.
- Increasing the annual land tax surcharge on foreign home owners to 2% from the existing 0.75%\.
Further information for First Home Buyers is available on the Office of State Revenue (OSR) website – http://www.osr.nsw.gov.au/first-home-buyers
The new measures aim to improve housing affordability throughout NSW.