28 Aug 2017
As of the 1st July the State Government introduced several new stamp duty reforms to improve housing affordability and assist first home buyers in buying their first home.
These reforms include:
- First home owners in NSW will not be liable to pay stamp duty on both new and existing homes for property with a purchase price of up to $650,000.00.
- There will also be stamp duty relief introduced in respect to properties with a purchase price between $650,000 and $800,000.00.
- Stamp duty on lenders’ mortgage insurance will be abolished.
- The stamp duty surcharge for foreign investors will double from 4% to 8% and the land tax surcharge from 0.75% to 2%, in an effort to reduce competition and lower prices for local purchasers.
- The state government has also decreased the foreign resident capital gains withholding tax threshold (FRCGWT), which previously applied for any property over $2M at a rate of 10%. Under the new reforms any property over $750,000.00 will now incur FRCGWT of 12.5%.
- The $5,000.00 New Home Grant Scheme has now been abolished.
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