The NSW state budget delivered in June 2010 announced certain
exemptions and concessions to stamp duty on property, as well as a
new tax on property purchases.
Home Builders Bonus (HBB)
The budget reveals that stamp duty on property will undergo
significant changes, which are to be set out in the State Revenue
Legislation Amendment Bill 2010.
The government is introducing the NSW Home Builders Bonus in an
attempt to stimulate the construction of new homes in NSW by
providing exemptions and concessions for certain new home
purchases, off the plan purchases, vacant land purchases and
purchases by eligible seniors of newly constructed homes as their
principal place of residence.
From 1 July 2010, there will be no stamp duty for vacant land
offthe-plan purchase contracts up to $600,000 entered into before 1
Furthermore, from 1 July 2010, there will be a 25% stamp duty
reduction for contracts of homes under construction or
newlycompleted homes worth up to $600,000, as long as the contract
is entered into between 1 July 2010 and 1 July 2011 and the home is
completed by 31 December 2012, or the contract is entered into
between 1 July 2011 and 1 July 2012 and the home is completed by 31
Stamp duty exemption for eligible seniors
From 1 July 2010, there will be no stamp duty to be paid by
eligible seniors who are purchasing new homes worth up to $600,000
as their principal place of residence. An eligible senior is
defined as being someone who is 65 years of age or older, is an
Australian citizen or permanent resident and neither that person
nor their spouse has previously had the benefit of this
The budget has also introduced a new tax on property purchases.
Buyers will now have to pay $190 for a property valued at less than
There will be a tax of 0.2% of the value for a property valued
between $500,000 and $1 million and a tax of 0.25% of the value for
a property valued at over $1 million.
The tax of $190 reflects the current flat fee for registration
of a transfer of land at the Department of Lands. Presently, the
fee is $190 irrespective of the consideration paid or the value of
the property being transferred. Other states have a sliding scale
for calculation of registration fees for transfers of land. It is
suggested that the introduction of this new tax is an attempt to
bring NSW in line with other states.
For more details on the property tax on purchases please see
Catherine Hallgath's article in this month's Swaab
Swaab was recently named a 2009 Winner in the
ALB Employer of Choice awards, and was winner 'Best Law Firm in
Australia (Revenue < $20m)' and 'Attribute Award for
Exceptional Service (Australia Wide)'
in the 2008 BRW- Client Choice Awards.
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