Australia’s most populous state will soon remove stamp duties for first home buyers if they build a new home or buy a brand new one.
As of August 1, newcomers to New South Wales real estate, who spend up to $ 800,000 on a home and land package, will be spared paying $ 31,335 in transfer tax.
The 12-month temporary policy would help them buy a home in Auburn or Lakemba, in the west of the city, where the mid-price is less than $ 800,000, CoreLogic data showed.
Buyers would have more choice to move on to Guildford, where the median price is $ 727,000.
Beginning August 1, buyers of first homes in New South Wales, who spend up to $ 800,000 on a brand new home, will be spared paying $ 31,335 in transfer tax. This would apply to a nearly completed duplex (pictured) in Guildford in west Sydney for $ 789,000
Sydney real estate beginners who want to avoid paying full stamp duty in a more upscale suburb would have much more choice if they opted for a brand new two bedroom apartment.
The median price for a unit in Waitara, on Sydney’s Upper North Shore, is $ 654,000.
First-time home buyers who spend $ 1 million on an average-priced home in Sydney don’t get a full stamp duty exemption on the usual $ 40,335 tax.
A real estate novice who buys a $ 900,000 home will get $ 15,668 off the usual $ 35,835 bill, while someone settling a brand-new $ 950,000 home will get $ 7,834 off the regular $ 38,085 tax.
An empty piece of land worth $ 400,000 will no longer earn $ 7,793 in stamp duty.
NSW Prime Minister Gladys Berejiklian said the stamp duty exemption was meant to spur construction activity as COVID-19 restrictions brought Australia into recession for the first time in 29 years.
“Thousands of people will see their bank balances benefiting from this change – it will help get more keys to more front doors of more new homes,” she said.
“It will also boost housing construction across NSW and support construction jobs at a time when we need them more than ever.”
Sydney real estate beginners who want to avoid paying full stamp duty in a more upscale suburb would have much more choice if they opted for a brand new two bedroom apartment. The median price for a unit in Waitara, on Sydney’s Upper North Shore, is $ 654,000. Pictured is a brand new two bedroom unit on the market for $ 765,000
Treasurer Dominic Perrottet said that an increase in the real estate market in NSW would help the national economy.
NSW Prime Minister Gladys Berejiklian said the stamp duty exemption was meant to boost construction activity as COVID-19 restrictions brought Australia into recession for the first time in 29 years
“If the states do well, the country will do well,” he said.
As of July 2017, first home buyers in NSW are exempt from paying stamp duties on homes and apartments worth up to $ 650,000, whether brand-new or existing.
Mr. Perrottet has prompted the federal government to raise the goods and services tax beyond the current 10 percent level, or to extend it to fruits, vegetables and bread.
He wants Canberra to provide the states and territories with additional income through the Commonwealth Grants Commission to eliminate inefficient taxes such as stamp duty and payroll taxes.
Both hated state taxes were intended to be abolished in 2000 when the GST debuted, but the consumption tax only replaced indirect federal wholesale taxes instead of state taxes.
Last month, federal treasurer Josh Frydenberg announced the $ 688million HomeBuilder scheme that gives all homeowners through December 31, whether first-timers, a $ 25,000 grant to build a home worth $ 750,000 if they lived in it.
The federal government’s $ 500 million First Home Loan Deposit Scheme also allows newcomers to real estate to take out a mortgage with a five percent down payment, as taxpayers endorse the 20 percent down payment.