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Changes to Stamp Duty in NSW Coming into Effect 1 July 2017

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.

The material in this blog is general in nature. It is made available on the understanding that OzPropertyLaw is not thereby engaged in rendering professional legal advice. Before relying on the material in any important matter, users should carefully evaluate its accuracy, currency, completeness and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

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