In what was announced as a 'win-win' for those taking their first steps on the property ladder this month, the NSW Government has announced plans to pause stamp duty with the hope of boosting construction amid the ongoing COVID-19 pandemic.
What is changing?
The threshold for stamp duty on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million.
The stamp duty threshold on vacant land will also rise from $350,000 to $400,000 and will phase out at $500,000.
Who is eligible?
The initiative started on 1 August and will only apply to first home buyers and newly-built homes and vacant land, not to existing homes or apartments, and will be available for 12 months.
But wait there's more
The state will continue to offer a $10,000 first homeowner grant which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000.
According to NSW Treasurer, Dominic Perrottet, the increased threshold will spare first home buyers from having to pay up to $31,335 in stamp duty on a new $800,000 home.