Stamp Duty Relief for First Home Buyers Welcomed
Property Council has welcomed the announcement from the NSW Government today on their plans to provide stamp duty relief for first home buyers purchasing newly built properties worth up to $1 million, to boost the construction sector and support the residential property market.
“Today’s announcement is a positive step taken by the NSW Government to support jobs and investment in the property and construction sector – it’s a win win – it will help stimulate the state’s economy and also provide incentives for first home buyers looking to buy their first home,” Property Council’s Acting NSW Executive Director, Belinda Ngo said
“There is no doubt that COVID-19 has seen a significant reduction in development and construction activity especially in residential. This temporary measure will help to protect the jobs of almost 400,000 people who rely on this sector for employment while continuing to deliver housing in our communities.
“We have been working closely with our members and the NSW Government over the last few months to put forward key recommendations and targeted measures that can provide stimulus to developers and prospective purchasers in the sector and continue creating jobs.
“Short term concessions and direct measures such as this have the capacity to stimulate both demand and supply, especially in relation to housing in the short to medium term. Given the economic shock created by COVID-19, this the right type of measure to help achieve this and support both demand and supply at both a State and Local Government level.
The changes include:
• 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 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.
• The NSW Government will also continue to offer a $10,000 First Home Owner Grant, which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000 in total.
More information on the first home buyer assistance schemes is available here
Media contact: Michelle Guido | M 0437 315 198 | E [email protected]