The NSW construction industry and the state’s first home buyers will be the big winners under a scheme which will eliminate stamp duty on newly-built homes below $800,000 and slash thousands of dollars for properties up to $1 million.
NSW premier Gladys Berejiklian says the change to stamp duty thresholds would also support new home construction and create jobs as part of the government’s COVID-19 Recovery Plan.
“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,” says 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.”
Under the changes the threshold above which stamp duty will be charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million.
The government forecasts more than 6000 first home buyers will benefit from the changes, saving eligible first homebuyers thousands of dollars.
Under the changes the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000.
The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for a 12-month period, commencing on 1 August 2020. Other purchases will continue to benefit from existing schemes.
Treasurer Dominic Perrottet says the changes would save first home buyers stamp duty of up to $31,335 on a new $800,000 home.
“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,” he says.