Fhog and Stamp duty free - New South Wales

Supporting first home buyers

The NSW Government’s comprehensive package to improve housing affordability is focused on helping first home buyers, who often face stiff competition from investors.

For first home buyers, this comprehensive package will:

• Tick iconabolish stamp duty on all homes up to $650,000
• Tick icongive stamp duty relief for homes up to $800,000
• Tick iconprovide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
• Tick iconabolish insurance duty on lenders’ mortgage insurance
• Tick iconensure foreign investors pay higher duties and land taxes
• Tick iconno longer allow investors to defer paying stamp duty on off-the-plan purchases.

• Stamp duty abolished or reduced. Save up to $24,740 on a $650,000 home
• Grant of up to $10,000 for builders of new properties worth up to $750,000 and buyers of new properties worth up to $600,000
• Insurance duty on lenders’ mortgage insurance abolished

• Surcharge on stamp duty doubled from 4% to 8% and surcharge on land tax from 0.75% to 2%
• Investors of any kind will no longer be able to delay for 12 months paying stamp duty on off-the-plan properties

Stamp duty relief

The duty paid when buying residential property can be an obstacle for first home buyers. For those entering the market, the NSW Government is abolishing this duty on new and existing homes worth up to $650,000.

For properties valued at between $650,000 and $800,000, the duty concession will be gradually reduced.

Concessions on vacant land will remain unchanged.

*Total of stamp duty exemptions plus first home owners grant plus savings from LMI duty abolition (Genworth LMI Premium Estimator based on a first home buyer with a $50,000 deposit).**Does not include additional land tax surcharge.

When do these stamp duty savings begin?

This change will take effect from 1 July 2017. 

Contracts dated prior to the commencement of these reforms will continue to be eligible for the same grants, concessions, and conditions for which they would have been eligible had these changes not occurred.

First Home Owners Grant (New Homes)

First home buyers building a new property will be entitled to a $10,000 grant on homes worth up to $750,000.

First home buyers purchasing a new property worth up to $600,000 will be entitled to a $10,000 grant.

This policy aims to provide assistance to first home buyers and stimulate the construction of new dwellings.

The $5,000 New Home Grant Scheme, which was available to other buyers including investors, will be closed.

Insurance duty on lenders’ mortgage insurance abolished

Insurance duty on lenders’ mortgage insurance is imposed at a rate of nine per cent of the premium. The removal of this duty will save all home buyers (first home buyers or not) money if they need lenders’ mortgage insurance.

This policy will take effect from 1 July 2017.

For example, on a home valued at $800,000, a buyer with a deposit of $50,000 who needs lenders’ mortgage insurance, could save about $2,900.

Expanding priority precincts and growth areas

The NSW Government will expand the Priority Precincts identified for growth and revitalisation in Sydney to include more areas and fast-track the delivery of new homes in these areas. The expansion of these precincts, which will deliver around 30,000 additional homes, will allow for the acceleration of rezoning and for modern, more diverse developments to be built.

This expansion will ensure an increase in the supply of housing in:

• Belmore/Lakemba
• Burwood/Strathfield/Homebush
• Campsie/Canterbury
• Cherrybrook (government land)
• Frenchs Forest
• Glenfield
• Leppington town centre
• Anzac Parade corridor
• Riverwood
• Schofields town centre
• Seven Hills/Wentworthville
• St Leonards/Crows Nest
• Telopea
• Turrella/Bardwell Park
• Westmead.

Accelerate council-led rezonings

A specialist team will be established within the Department of Planning and Environment to accelerate council rezonings in Sydney and regional areas. This will accelerate the supply of available housing capacity by rezoning greenfield and urban renewal sites.

More infrastructure

Increasing housing supply is only possible if there is adequate infrastructure to service new homes and support communities.

The NSW Government will boost infrastructure funding to accelerate the delivery of housing, ensuring that works which support housing are prioritised and in locations in alignment with government planning and housing demand.

The NSW Government will provide access to around $3 billion in infrastructure funding to accelerate the delivery of housing. This funding will include more direct infrastructure funding, support for councils to borrow funds so they can bring forward capital works and reforms to infrastructure contributions to ensure that developers make a fair contribution towards the costs of establishing communities.

Snapshot

NSW Government is investing a record $73.2 billion in infrastructure across the state

Key transport projects include WestConnex, NorthConnex, Sydney Metro, CBD and South East Light Rail, Parramatta Light Rail, B-line buses

And across regional NSW the revitalisation of Newcastle and the Pacific, Princes and Great Western Highway upgrades

More state infrastructure 

The NSW Government will contribute $1.6 billion, including new funding of $600 million made available through Restart NSW for the Housing Acceleration Fund. An additional $1 billion from the state capital program will be redirected towards priority projects to support housing.

The NSW Government is investing heavily in infrastructure statewide, with millions of dollars committed to new and redeveloped hospitals, classrooms, better sporting facilities and transport hubs.