The NSW Government’s plans to provide stamp duty relief for first home buyers purchasing newly built properties worth up to $1 million has been welcomed by numerous bodies.
Under the new plans, from August 1, the stamp duty exemption limit will be lifted from $650,000 to $800,000 for the purchase of a newly-built home.
The stamp duty concession will also increase to cover newly-built homes worth between $800,000 and $1 million.
The stamp duty threshold on vacant land will also rise, from $350,000 to $400,000 and will phase out at $500,000.
The changes will last until August 1, 2021.
“Today’s announcement is a positive step taken by the NSW Government to support jobs and investment in the property and construction sector,” Property Council’s Acting NSW Executive Director, Belinda Ngo, said.
“It’s a win win – it will help stimulate the state’s economy and also provide incentives for first home buyers looking to buy their first home.
“There is no doubt that COVID-19 has seen a significant reduction in development and construction activity especially in residential. This temporary measure will help to protect the jobs of almost 400,000 people who rely on this sector for employment while continuing to deliver housing in our communities.
“We have been working closely with our members and the NSW Government over the last few months to put forward key recommendations and targeted measures that can provide stimulus to developers and prospective purchasers in the sector and continue creating jobs.
“Short term concessions and direct measures such as this have the capacity to stimulate both demand and supply, especially in relation to housing in the short to medium term. Given the economic shock created by COVID-19, this the right type of measure to help achieve this and support both demand and supply at both a State and Local Government level.”
The Housing Industry Association also applauded the announcement, calling it “a very welcome move”.
“HIA has been seeking changes to the stamp duty arrangements to better reflect the price of new homes in NSW and in particular in Sydney,” said David Bare, HIA Executive Director NSW.
“This initiative will have positive outcomes for the housing industry and the NSW economy as a whole.
“The Government is forecasting that this change will assist more than 6000 first home buyers, which have traditionally been under-represented in the NSW market, particularly in Sydney.
“Combined with the existing $10,000 first home owners grant and the $25,000 HomeBuilder grant, first home buyers in NSW should be looking to a new home as a real option to take up home ownership.
“More importantly, this 12 month package will provide a much needed boost to an industry for which hundreds of thousands of people in NSW rely on for employment.
“The home building industry will play a critical part of NSW’s economic recovery from COVID-19 related challenges and the NSW Government should be applauded for listening to our calls for greater support.
“This package will ensure that there is plenty of suitably priced new homes for first home buyers to take advantage of right across the state.”