NSW State Budget 2017 - Stamp duty update

By Lawrence Dujmovic - June 2, 2017

Foreigners who purchase property in NSW will be required to pay more in NSW State government taxes whilst Australians will receive assistance. These new laws apply from 1 July 2017.

In brief, these new NSW State laws affect the following:

Australians

For first home buyers, the new laws will:

  • Provide a $10,000 grant for purchasers of new homes up to $600,000 and $10,000 to first home buyers building a new property worth up to $750,000.
  • Non-investors will still be entitled to a 12-month delay in the payment of stamp duty meaning stamp duty will be payable within 3 months of settlement or 15 months after contract date (whichever comes first). This is available regardless of whether the purchaser is a first home buyer or not.
  • Abolish stamp duty on homes up to $650,000 (both existing and new homes). 
  • Give stamp duty relief for homes up to $800,000 (both existing and new homes).
  • Abolish insurance duty on lenders’ mortgage insurance.
  • Still allow non-investors a 12-month delay in the payment of stamp duty, meaning stamp duty will be payable within 3 months of settlement or 15 months after contract date (whichever comes first). This is available regardless of whether the purchaser is a first home buyer or not.
  • No longer allow investors to defer paying stamp duty on off-the-plan residential purchases. Investors will need to pay stamp duty on the earlier of completion (settlement) and 3 months after the contract is signed.

Foreigners

  • Foreign investors pay higher stamp duty rising from 4% to 8% (in addition the normal stamp duty) and land taxes rises from 0.75% to 2%.
  • Foreign developers will be exempt from the increased surcharges.

Click here to read more on first home buyers


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