The New South Wales (NSW) government has decided to make temporary changes to stamp duty exemption for first home buyers.
A stamp duty is a government tax that is paid for certain transactions like buying a property.
From 1 August 2020, the NSW government increased the threshold for stamp duty exemption for first home buyers from $650,000 to $800,000 for newly built homes and from $350,000 to $400,000 for vacant land.
The change is predicted to provide relief to 6,000 first home buyers who want to enter the property market in NSW.
What is the eligibility criteria for the NSW stamp duty change?
- You purchased a property from 1 August 2020.
- You must be a first home buyer.
- Only applicable for newly built homes or vacant land with intent to build.
- You can either be an Australian citizen or permanent resident.
- You must be 18 years old and above.
- The change does not apply to existing dwellings.
How much will I save?
The table shows the amount of stamp duty exemption and concession for first home buyers in NSW from 1 August 2020:
| Type of property | Property value | Existing stamp duty | New stamp duty | Savings |
|---|---|---|---|---|
| New home | $650,000 | $0 | $0 | Exempted |
| New home | $700,000 | $10,445 | $0 | $10,445 |
| New home | $800,000 | $31,335 | $0 | $31,335 |
| New home | $900,000 | $35,835 | $20,168 | $15,668 |
| Existing home | $650,000 | $0 | $0 | Exempted |
| Existing home | $800,000 | $31,335 | $31,335 | $0 |
| Vacant land | $350,000 | $0 | $0 | Exempted |
| Vacant land | $400,000 | $7,793 | $0 | $7,793 |
You can use our stamp duty calculator to find out how much stamp duty you will pay.
What is considered a newly built home?
To be considered a new home:
- This is the first time the home is sold.
- The property was vacant before you moved in.
Is this permanent?
No, it is only available for 12 months starting from 1 August 2020.
Will stamp duty be abolished?
On August 14 2020, Philip Lowe, governor of the Reserve Bank of Australia said that he is in support of removing stamp duty as part of a broader tax reform agenda.
During his bi-annual address to the House of Representatives Standing Committee Economics, Governor Lowe explained that stamp duty is a tax on mobility and people moving locations.
The Premiers of New South Wales and Victoria confirmed that stamp duty reform would be considered to rejuvenate the economy that has been hit by the COVID-19 pandemic.
What other government grants are available in NSW?
The following grants are available for first home buyers in NSW:
- The $10,000 first home owners grant is available if you’re buying a new home valued at less than $600,000 or building a new property valued at $750,000 or less.
- The $25,000 HomeBuilder grant is available for first home buyers to build a home valued less than $750,000.
- You might be eligible for the First Home Loan Deposit Scheme in NSW if you’re buying a property valued at $700,000 or less.
Are you buying your first home in NSW?
Our extensive first home buying guide will help you on your journey to home ownership with information on tips to save for a deposit and applying for a home loan.
Our mortgage brokers have helped many first home buyers realise their dreams of home ownership. Call us on 1300 889 743 or fill in our free assessment form.
