PHOTO: First-time homebuyers. FILE
First-time homebuyers in New South Wales (NSW) can expect significant changes starting July 1. The government has announced that certain properties will be exempt from hefty stamp duty fees.
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From Saturday onwards, stamp duty rates on homes valued between $800,001 and $1 million will follow a sliding scale, with reduced benefits for more expensive properties. For instance, an $850,000 property will incur a stamp duty tax of $10,023, saving buyers $23,318 compared to the previous fee of $33,340. Similarly, a home purchased for $990,000 will result in a stamp duty reduction from $39,640 to $38,086, translating to a $1,555 savings.
Previously, stamp duty exemptions only applied to homes below $650,000. However, under the new rates, approximately 8,600 first-home buyers are expected to qualify for a full exemption, while around 4,400 individuals will be eligible for a partial exemption in the upcoming financial year. The NSW Treasury predicts that the increased stamp duty exemptions, amounting to $150,000, will enable buyers to consider properties in suburbs such as Cambridge Park, North St Marys, Richmond, and Werrington, where the median house prices range between $650,000 and $800,000. Additionally, buyers will gain access to apartments in suburbs like Ashfield, Padstow, Arncliffe, Kogarah, Petersham, Epping, and Sutherland.
To enhance the integrity of the measures, the Labor party has proposed extending the minimum residency period
NSW Treasurer Daniel Mookhey acknowledges that stamp duty has been a significant barrier for prospective property buyers. He believes that these changes will give first-time buyers a competitive edge in the market, stating that July 1 will be a great day for thousands of additional first home buyers who will no longer have to pay stamp duty on their first home purchase. Mookhey further asserts that these adjustments make first homebuyer assistance in NSW simpler and fairer, providing support to those who need it the most.
The implementation of the new scheme coincides with the retirement of the First Home Buyers Choice program, which allowed buyers to choose between paying stamp duty or an annual property tax on homes valued up to $1.5 million. However, existing beneficiaries of the program will continue to be subject to their chosen arrangement until they sell their property. Despite attempts by the NSW opposition to retain both schemes, the government cited the significant cost burden as the reason for discontinuing them. The Labor party also highlighted that the former Coalition’s plan primarily benefited buyers in the $1 million to $1.5 million price range, according to their analysis.
SOURCE: NEWS.COM.AU