On 1 June 2017, the NSW Government announced various changes to Stamp Duty.
The NSW Government has proposed a comprehensive package to improve housing affordability, which is focused on helping first home buyers which will:
- Abolish Stamp Duty on all homes up to $650,000;
- Give Stamp Duty relief for homes up to $800,000;
- Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000.
- Abolish Insurance Duty on Lender’s Mortgage Insurance;
- Ensure foreign investors pay higher duties and land taxes;
- No longer allow investors to defer paying stamp duty on off-the-plan purchases (buyers who are purchasing a home they plan to live in off-the-plan, regardless of whether they are first home buyers or not will be still entitled to a 12-month delay in the payment of stamp duty).
The changes proposed by the NSW Government will take effect from 1 July 2017. Buyers will continue to be eligible for the same grants, concessions and conditions for which they would have been eligible had these changes not occurred for all Contracts dated prior to the commencement of these reforms.
First home buyers building a new property will be entitled to a $10,000 grant on homes worth up to $750,000. First home buyers purchasing a new property up to $600,000 will be entitled to a $10,000 grant. The $5,000 New Home Grant Scheme, which was available to other buyers, including investors, will be closed.
If you are interested in purchasing a property and would like more information on the recent changes, get in touch with the team at Rockliffs Lawyers.