NSW Government changes to Stamp Duty to tackle housing affordability

On 1 June 2017, the NSW Government announced various changes to the Stamp Duty to improve housing affordability.

The effect of the changes is that for any contracts dated on or after 1 July 2017:

• No Stamp Duty is payable on homes up to $650,000;
• Concessions on Stamp Duty apply to all homes up to $800,000;
• $10,000 grant is available for builders of new homes up to $750,000 and purchasers of new homes up to $600,000;     
• Insurance Duty on Lender’s Mortgage Insurance is no longer payable;
• Foreign investors are to pay higher duties and land taxes;
• Investors are no longer allowed to defer paying stamp duty on off-the-plan purchases (purchasers who are buying a home as a primary place of residence off-the-plan will be still entitled to a 12-month delay in the payment of the stamp duty).