As part of its efforts to boost the housing industry and the economy, the State Government of New South Wales has decided to temporarily increase the price ceiling of newly built houses which will be exempt from stamp duty.
Under the changes, first-time home buyers will not be required to pay stamp duty on newly constructed homes up to a value of $ 800,000. This translates into savings of up to $ 31,335.
The stamp duty for houses up to $ 1 million has been lowered – a new house worth $ 900,000 will only be charged a stamp duty of $ 20 168 dollars, against 35,835 dollars.
Vacant land valued up to $ 400,000 will now be exempt from stamp duty, which represents potential savings of up to $ 7,793.
Read also: Who benefits from ax stamp duty?
The changes to the stamp duty threshold will begin next month and will last for one year.
New South Wales Premier Gladys Berejiklian said changing stamp duty thresholds would also support the construction of new homes and create jobs as part of the COVID-19 stimulus package. government.
"Thousands of people will see their bank balances benefit from this change – it will help get more keys in more front doors of more new homes," she said.
New South Wales Treasurer Dominic Perrottet said the current stamp duty grant has already helped 93,000 first-time homebuyers since July 2017 and the changes will help more industry, especially in the midst of the COVID-19 outbreak.
"We need to make sure our yards keep ringing with hammers and saws because that means more people are working, and first-time homeowners will save money in the process "said Perrottet.
David Bare, executive director of NSW at HIA, said this announcement and other state and federal government housing support programs are critical in supporting the home construction industry.
"The homebuilding industry will play a pivotal role in NSW's economic recovery from the challenges of COVID-19, and the NSW government should be applauded for heeding our calls for greater support, ”he said. "This package will ensure that there will be plenty of new, reasonably priced homes that first-time homebuyers can enjoy across the state."
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