In good news for first home buyers in New South Wales, stamp duty exemptions and concessions will be getting a boost.
After years of rising property prices, it’s no secret that the current thresholds for stamp duty exemptions and concessions do not hold the same power.
The First Home Buyers Assistance Scheme will be expanded to increase these thresholds for New South Wales first home buyers. This includes:
- Full exemption from transfer duty (stamp duty) for new and existing homes valued up to $800,000
- Transfer duty concessions may be available for homes valued over $800,000 and less than $1 million
Previously, stamp duty exemption was capped at $650,00 for buying a new or existing home in NSW. A concession was also available for new and existing homes valued between $650,000 to $800,000.
Further, for those looking to purchase vacant land with the intent to build a home, the following exemptions and concessions may be available to you:
- Full exemption from transfer duty for land valued up to $350,000
- Transfer duty concession may be available for land valued over $350,000 and less than $450,000
How much will increasing stamp duty exemptions save first home buyers?
Stamp duty is one of the biggest upfront costs associated with purchasing property, and a significant factor hindering many first home buyers from taking the plunge. This is especially true in Sydney, where the median value of dwellings now sits at over $1 million as of August 2023.
Under the previous scheme rules, purchasing an $800,000 dwelling in New South Wales would cost home buyers $31,090 in transfer duty. By expanding transfer duty exemptions, first home buyers can put these funds to better use, such as boosting their deposit size or towards moving costs and renovations for the home.
Calculate how much stamp duty may cost you today with RateCity’s Stamp Duty calculator.
How else is NSW housing going to change?
On Tuesday, Premier Chris Minns noted that housing affordability and availability was the biggest single pressure affecting NSW residents. This comes after a year of rising interest rates and mortgage repayments for millions of Australians.
Under this new budget, $2.2 billion will be invested into new housing and infrastructure, under the Housing and Infrastructure Plan. This includes:
- “$400 million reserved in Restart NSW for the new Housing Infrastructure Fund, to deliver infrastructure that will increase housing supply across the state; and
- $300 million for Landcom to accelerate the construction of thousands of new homes, with 30% affordable housing.”
The state government has promised that 30% of the new housing will be for affordable housing, “targeting infill sites and government land for development”.
However, advocates have criticised that this new plan has not gone far enough. The Community Housing Industry Association NSW has described these measures as “extremely disappointing” in contrast to the sheer scale of those experiencing a “chronic housing crisis”.
The new Housing and Infrastructure Plan also includes $1.5 billion to build crucial infrastructure needed to support new homes in Sydney, the Lower Hunter, Central Coast and the Illawarra, including roads, parks, hospitals and schools.