First home buyers and the construction sector will be major beneficiaries under a targeted boost, which will end stamp duty on newly-constructed homes under $800,000 and cut thousands of dollars for homes up to $1 million.
According to Premier Gladys Berejiklian, the adjustment to stamp duty limits would also boost new home construction and create employment as part of Australia’s COVID-19 Recovery Plan.
Under the new amendments, the threshold will increase from the current $650,000 to $800,000, with the concession dropping on higher values before phasing out at $1 million.
Over 6000 first home buyers are expected to benefit from the changes, delivering thousands of dollars in savings for qualified first home buyers.
The changes also increase the stamp duty threshold on vacant lot from $350,000 to $400,000 and phase out at $500,000.
The new changes will only cover newly constructed homes and vacant lot, not to existing properties, and will last for 12 months, which started on 1 August 2020. Other purchases will continue to be covered by existing schemes.
First home buyers would save up to $31,335 on stamp duty on a new $800,000 home, said Treasurer Dominic Perrottet.
Under the existing scheme, more than 93,000 first home buyers have benefited since July 2017. The construction industry will also receive additional support as the nation faces the challenges of COVID-19.
The NSW Government’s $10,000 First Home Owner Grant will also continue to be available for people purchasing a new first home valued at no more than $600,000, or purchasing land and constructing a new first home valued at no more than $750,000 in total.
This means a home owner stands to benefit a maximum of $32,335 if they’re buying a new home and getting the grant.
Here is a table showing the indicative 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 $800,00||$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|