Stamp duty scrapped for eligible NSW first home buyers

The NSW state government has announced it will temporarily axe stamp duty on newly built homes under $800,000 for first home buyers. In an effort to boost construction and create jobs amid the COVID-19 crisis.¹ For further information on the NSW stamp duty changes and eligibility criteria, click here.

While further details of this change are still expected to be announced here is what we know so far.

What are the changes?

Under the changes, the threshold for stamp duty being charged on newly-built homes for eligible 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

As well as increasing the stamp duty threshold for newly-built homes, the government will also raise the threshold for stamp duty on vacant land. This will rise from $350,000 to $400,000 and will phase out at $500,000 for those who are eligible.

The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes.

When does it start and how long will this pause last for?

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.  

What other grants can I access?

NSW First Home Buyers, if eligible, could access the $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 $750,000.¹

How much could I save?

This means the benefit a homeowner could be entitled to is $32,335 if purchasing a new home and accessing the NSW first home owner grant.²

When and how can I apply?

Further details of this change are still expected to be announced so be sure to watch this space for more details to come. For the most recent media release which highlights eligibility criteria click here and for the most up to date and latest information on NSW stamp duty visit revenue.nsw.gov.au 

If you want to stay in the loop and find out more about the latest NSW stamp duty changes for first time buyers and how it could work for you, contact your local Mortgage Choice broker today.

For more information about becoming a first home buyer check out our information centre.