Stamp duty changes from 1 July 2017
The NSW Government has recently made some changes to the stamp duty payable by first home buyers. The changes came into effect on 1 July 2017 and include:
- No stamp duty on purchases of new and existing homes up to $650,000
- Discounts for purchases of new and existing homes up to $800,000
- A $10,000 grant to people building new homes up to a value of $750,000
- A $10,000 grant to people buying new homes up to a value of $600,000
- No insurance duty on lenders mortgage insurance (previously 9%)
If you are a first home buyer purchasing vacant land and you intend to build a new home on it, but you are buying the land with someone who has owned land before, you are still able to access concessional treatment through the ‘shared equity arrangements’.
There are also changes to the treatment of foreign investors who will now pay an 8% surcharge on their stamp duty liability, which has been doubled from 4%. Land tax rates have also been increased from 0.75% to 2%. Discounts previously available for off-the-plan purchases have also been removed.
If you would like further information about the changes, you can read about them here: https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/