Changes to Stamp Duty Exemptions for First Home Buyers Purchasing a New Property
If you live in NSW, and are buying your first home, stamp duty exemptions are about to reduce for those purchasing a new property or vacant land. At present, if you buy a new home i.e. a house, duplex or apartment that no one has lived in or owned before you, you are exempt from paying stamp duty on that property if the contract price is under 800K. If the contract price is between 800K and 1mil, there are concessions on the stamp duty payable. For vacant land, stamp duty is exempt up to 400K contract price, and concessions for a contract price between 400K and 500K.
As of 1 August 2021, these thresholds are being reduced.
For new properties, the stamp duty exemption figure reduces to 650K, with concessions up to 800K. For vacant land, the exemption figure reduces to 350K, with concessions up to 450K.
As an example, if you were to buy a brand new apartment this week, with a contract price of 750K, you would pay no stamp duty. If you were to purchase the same property on or after 1 August, the stamp duty payable would be $20,890.00.
If you were to buy a vacant land lot this week, with a purchase price of 399K, your stamp duty obligation would be $0. If you were to buy the same block of land on or after 1 August, the stamp duty payable would be $7,573.93.
So if you are currently looking at purchasing a new property or vacant land, signing the Contract of Sale prior to 1 August will save you a considerable amount of money. Note that it is the date of contract signing that is the relevant date, not the date of settlement of that property.
If you have any questions, or would like to find out the stamp duty payable for a property you are considering buying, contact me on firstname.lastname@example.org or call on 0414670151.