On 1 June 2017, the NSW Government announced major changes to NSW stamp duty which will favour first home buyers and target foreign investors.
From 1 July 2017 first home buyers who purchase an existing home worth up to $650,000.00 in value will be exempt from paying stamp duty. The threshold for first home buyers buying new homes will be raised from $550,000.00 to $650,000.00. First home buyers that purchase homes for a value between $650,000.00 and $800,000.00 will be eligible for a discounted rate of stamp duty. Furthermore, the stamp duty on lenders’ mortgage insurance will be abolished.
The NSW Government has abolished the $5,000.00 grant to all purchasers of new homes and has also reduced the eligibility criteria for a $10,000.00 first home owner’s grant.
To make way for these concessions, the NSW Government will increase the stamp duty surcharge on foreign investors to 8 per cent. The annual land tax will also increase from 0.75 per cent to 2 per cent.
If you have any questions about the changes to NSW stamp duty or would like advice specific to your situation, please do not hesitate to contact us directly.
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