The NSW Government recently announced a number of measures in an attempt to improve housing affordability for first home buyers across the state.  At present, first home buyers receive a stamp duty exemption on new homes valued up to $550,000 and vacant land up to $350,000 and concessions for new properties valued between $550,000 and $650,000 and vacant land costing between $350,000 and $450,000. 

The Government’s changes commencing on 1 July 2017 include:

• abolishing all stamp duty for first home buyers on existing and new properties valued up to $650,000;
• stamp duty concessions for first home buyers of properties valued up to $800,000;
• abolishing stamp duty on lenders’ mortgage insurance (which banks often require when a purchaser has a limited deposit);
• increasing the foreign investor surcharges on stamp duty from 4% to 8% and on land tax to 0.75% to 2%; and
• removing stamp duty concessions for investors purchasing off-the-plan properties.

To expedite the delivery of new housing the Government has also announced changes to Local Councils’ planning processes and committed $3 billion to infrastructure.

Please contact us if you are buying or developing properties in NSW and would like further information on how the above affects you or your business.

Emma Mancini