On Monday 27 July 2020, New South Wales Premier Gladys Berejiklian announced significant measures to support first home buyers and the construction industry through the continuing impact of the COVID-19 pandemic on the state’s housing market.
For the 12 months beginning 1 August 2020, stamp duty will be eliminated on newly built homes valued at less than $800,000, and thousands will be reduced from the stamp duty paid on new and existing homes valued up to $1 million.
Quoted in an NSW Government press release, Premier Berejiklian said that these new measures would benefit thousands of people across the state – helping more than 6000 first home buyers enter the property market, while also boosting construction in NSW and supporting jobs in the industry.
The NSW Government will continue to offer the $10,000 First Home Owner Grant, which is available for those purchasing a new first home valued up to $600,000 or a new first home and land package valued up to $750,000.
In the press release, NSW Treasurer Dominic Perrottet said that the existing First Home Owner Grant had already helped more than 93,000 first time buyers enter the housing market, and that the additional cuts to stamp duty were set to help many more make the leap.
According to information released by the NSW Government in July, the indicative savings on stamp duty due to the new changes in thresholds would be:
|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|
For further information regarding a range of grants and schemes offered by the NSW Government, many in response to the economic fallout of COVID-19, visit: https://www.revenue.nsw.gov.au/grants-schemes
The above information is a brief summary only and does not take into account your personal needs and is not a substitute for independent professional advice. We strongly recommend that you speak to your accountant as they will be able to provide you the most suitable advice for your individual circumstance and to ensure that you are also always receiving the most up to date information.
Any content on this website is general only and does not take into account your particular circumstances and needs. Before acting on any content you should assess or seek advice as to whether it is appropriate for you.