Highlights
- The New South Wales government has raised the stamp duty exemption limit for First Home Buyers to $800,000.
- Those people who buy land for the purpose of building a house will also get an exemption in the stamp duty of the land.
- This scheme is for 12 months - from August 1, 2020, to July 31, 2021.
"In a bid to provide a boost to the construction sector in the state, the NSW Government has increased the threshold above which transfer (stamp) duty is charged on new homes for first home buyers," Mr Navjeet Singh Matta, a Senior Credit Advisor told SBS Hindi.
The threshold has been increased from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million.
The transfer (stamp) duty threshold on vacant land will also rise from $350,000 to $400,000 and will phase out at $500,000.
"The scheme, the new transfer (stamp) duty threshold will be in place for 12 months and will apply to contracts executed from 1 August 2020 to 31 July 2021," Mr Matta said.
This scheme is only for first home buyers and on new homes.
"This rebate will also be applicable for Land and Home Package. And this exemption is for permanent residents as well as Australian citizens," Mr Matta said.
A concessional rate of duty will apply to homes valued more than $800,000 but less than $1,000,000 and a vacant block of land valued more than $400,000 and less than $500,000.
How the First Home Super Saver Scheme works Source: Pixabay
"However, the condition is that the land was purchased with the intention of building a house," Mr Matta said.
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Stamp duty exemption in addition to the Home Builder Grant Scheme
Mr Matta says in addition to stamp duty exemption, people can also benefit from the Home Builder Grant scheme announced by the Federal government.
Home Builder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020.
Construction must commence within three months of the contract date.
"Home Builder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme," Mr Matta explains.
"However, this is only for those who want to build their new house or renovate the house where the price of the house is less than $ 750,000. And this scheme is only for Australian citizens," Mr Matta adds.
