New South Wales’ construction industry is set to benefit from a targeted boost as the state moves to eliminate stamp duty on newly-built homes below $800,000.
The changes to stamp duty thresholds aim to support new home construction and create jobs as part of the State Government’s COVID-19 Recovery Plan.
Under the changes 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 government forecasts more than 6000 first home buyers will benefit from the changes, saving eligible applicants thousands of dollars.
Under the changes the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000.
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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.
Premier Gladys Berejiklian said thousands of people will see their bank balances benefit from this change.
“…it will help get more keys into more front doors of more new homes,” she said.
“It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before.”
Treasurer Dominic Perrottet said the changes would save first home buyers stamp duty of up to $31,335 on a new $800,000 home.
“The current scheme has already helped over 93,000 first home buyers since July 2017 and this will give the construction industry extra support as we face the challenges of COVID-19,” Perrottet said.
“We need to ensure our building sites keep ringing with hammers and saws as that means more people working, and first home owners will save money in the process.”