The NSW Government has announced temporary Changes to Stamp Duty as part of their COVID-19 Recovery Plan. The move will help first home buyers as well as the construction industry, creating jobs which in turn will help boot the economy.
Stamp Duty Waiver for First-home Buyers
Under the new changes, the threshold above which stamp duty will be charged on new homes for first home buyers has been raised to $800,000 (as opposed to the earlier threshold of $650,000). To put it simply, stamp duty will be eliminated for first home buyers buying new homes that are valued at $800,000 or lesser. This change came into effect on August 1, 2020.
Stamp duty threshold for vacant land will increase from $350,000 to $400,000 and will phase out at $500,000. It needs to be noted that the Stamp Duty Exemption only applies for newly built homes and vacant land and not for existing homes.
An Effort to Protect Jobs in The Construction Sector
The stamp duty changes were made in a bid to protect the jobs of over 400,000 people who are dependent on the construction sector for employment. Due to the COVID19 pandemic, new home constructions were nose-dived, reaching the biggest slump in a six-year time period in the 12 months to March. The NSW Government is hoping these incentives will encourage more people to spur into action and speed up their first-home purchase.
Treasurer Dominic Perrottet noted that these changes would save a first home buyer up to $31,335 in stamp duty on a new home valued at $800,000.
Is the Stamp Duty Exemption Offered in Conjunction with The First Home Owner Grant and the HomeBuilder Grant?
Yes, provided you meet all the requirements for it. That is, if your newly built first home is valued at $600,000 or less – or you’re buying land and building your new first home and the total value comes up to no more than $750,000 – then you’ll be eligible for a $10,000 First Home Owner Grant. And yes, you can get the stamp duty in conjunction with the First Home Owner Grant and the recently announced $25,000 HomeBuilder Grant.
If you’re eligible for all three schemes, you can end up saving quite a chunk on your first home. This is a great opportunity for those who’ve been on the fence about buying their fist new home. Looks like now’s the time to take the plunge and reap all the benefits that the government’s offering.
If you’re looking for a property lawyer or conveyancer, get in touch with Platinum Lawyers at (02) 8084 2764.
