First home buyers: What do the latest stamp duty reforms mean for you?

Stamp duty reforms NSW

CURRENT INCENTIVES 

Stamp duty incentives for first home buyers in New South Wales currently include;

  • Exemption from stamp duty on vacant blocks of residential land valued up to $350,000.
  • Stamp duty concessions on vacant blocks of residential land valued between $350,000 and $450,000.
  • Exemption from stamp duty on new homes valued up to $550,000.
  • Stamp duty concessions on new homes valued between $550,000 and $650,000.

First home buyers who purchase above these thresholds or purchase an existing home are not currently entitled to any stamp duty incentives and accordingly must pay full stamp duty on their purchase.

Incentives from 1 July 2017

In a move to improve housing affordability and more specifically to assist first home buyers enter the market and compete with investors, Premier Gladys Berejiklian announced reforms to stamp duty to commence from 1 July 2017.

Such reforms increase the current thresholds for stamp duty exemption and concession for first home buyers and allow stamp duty incentives for existing homes. The reforms include;

  • Exemption from stamp duty for existing and new homes valued up to $650,000 for first home buyers
  • Stamp duty concessions for existing and new homes valued up to $800,000 for first home buyers
  • Abolishing the 9% stamp duty on Lender’s Mortgage Insurance for first home buyers
  • Removing stamp duty concessions for off the plan purchases for non-first home buyers
  • Increasing surcharge purchaser duty for foreign persons from 4% to 8%

If you are a first home buyer considering purchasing, contact Coutts Solicitors & Conveyancers today. Coutts can advise you on how the stamp duty reforms could benefit you.