Great news for first-home buyers in New South Wales (NSW)! From July 1, 2023, stamp duty on property purchases under $800,000 will be scrapped. The current cap of $650,000 will be lifted, providing relief to thousands of first-home buyers. The legislation passed both the upper and lower house on Thursday night, and is expected to benefit around 8600 first-home buyers who will receive a full exemption. Additionally, 4400 people will qualify for a partial exemption.
For properties between $800,001 and $1m, a sliding scale of concessions will be available. Homebuyers purchasing an $850,000 property will save $23,318 on stamp duty tax, with a reduced tax of $10,023 instead of $33,340. However, concessions on properties closer to the $1m cap will be reduced. Homeowners purchasing a home for $990,000 will save just $1555, with stamp duty reduced from $39,640 to $38,086.
The increased stamp duty exemptions will replace the Coalition government’s First Home Buyer Choice scheme, which allowed homeowners to choose between an annual property tax or upfront stamp duty on homes up to $1.5m. The scheme will end on June 30, but people who bought their first home under the policy will not be affected by the change.
This move is expected to provide much-needed relief to first-home buyers struggling to save for a deposit and pay stamp duty on their first property purchase. The NSW Treasury estimates that the new policy will benefit around 13,000 homebuyers, providing a much-needed boost to the state’s property market.
If you’re a first-home buyer in NSW, this is great news! Start looking for your dream home and take advantage of the new stamp duty exemptions from July 1.