Article by Michelle Leftwich
Good news for first homebuyers looking to break into the competitive NSW property market. The NSW State Government has announced a temporary pause in Stamp Duty charges on the purchase of new homes under $800K for first homebuyers. The pause has been implemented in a further attempt to boost construction and create jobs within the building industry as the COVID-19 crisis continues to play out across the country.
New NSW Stamp Duty rules
The Stamp Duty pause will only apply to newly-built properties and vacant land and is due to come into effect on the 1st of August this year for a duration of 12 months. Under the changes, the threshold for Stamp Duty being charged on new homes will increase from the current $650,000 to $800,000. The concession is reduced on higher values before being phased out on properties valued at $1 million. The Stamp Duty threshold on vacant land will also rise from $350,000 to $400,000 and will phase out at $500,000.
First homebuyers who buy new homes are the big winners
Approximately 6,000 first homebuyers are expected to take advantage of the pause, and can expect to save thousands of dollars off the purchase of their first home. For example, on a property costing $800,000, this would equate to a saving of around $34,000.
On top of the Stamp Duty saving, eligible first homebuyers can access $10,000 for the First Home Owners grant, an extra $25,000 from the HomeBuilders grant. They may also apply to take advantage of the First Home Loan deposit scheme.
Confused about the grants and incentives available to you?
Read our simple guide on Stamp Duty to learn more about Stamp Duty tax.
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