The NSW Government has announced changes to stamp duty thresholds which mean first homebuyers could save over $30,000 when purchasing their new home.
As part of the Premier Gladys Berejiklian’s COVID-19 recovery plan, the changes will also be music to the ears of tradies as the construction industry is set to benefit from an increase in activity.
“Thousands of people will see their bank balances benefit from this change – it will help get more keys into more front doors of more new homes.”Premier Gladys Berejiklian
“It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before,” Ms Berejiklian said.
Stamp duty will be axed on newly-built homes under $800,000, which will mean up to $31,335 saved by first homebuyers.
Treasurer Dominic Perrottet said: “The current scheme has already helped over 93,000 first home buyers since July 2017 and this will give the construction industry extra support as we face the challenges of COVID-19.”
“We need to ensure our building sites keep ringing with hammers and saws as that means more people working, and first home owners will save money in the process,” Mr Perrottet said.
Government predictions suggest over 6000 first homebuyers will save money thanks to the new changes, which will take effect on 1 August, lasting for 12 months.
|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|