From 1 August 2020, new changes to the stamp duty threshold in NSW result in a wider range of properties being exempt from stamp duty.
The changes will only apply to newly built homes and vacant land. The threshold for existing homes will remain the same.
Currently, newly built homes with a price of up to $650,000 are exempt from stamp duty. The new changes will increase the threshold to $800,000. The threshold for a concession of stamp duty on newly built homes has also increased, phasing out at $1,000,000.
Vacant land properties with a price of $350,000 are currently exempt from stamp duty. This price will be increased to $400,000. Again, stamp duty concession thresholds for vacant land have increased, phasing out at $500,000.
The changes will last for a 12-month period, commencing 1 August 2020, and will result in first home buyers saving up to $31,335 worth of stamp duty on newly built $800,000 homes.
The NSW Government forecasts the changes will support new home construction, create jobs and benefit more than 6,000 first home buyers. The NSW Government have created the below table outlining the changes:
| Property type | Existing stamp duty amount for eligible first home buyers |
New stamp duty amount for eligible first home buyers |
Saving |
| Vacant Land $350,000 |
$0.00 | $0.00 | no change |
| Vacant Land $400,000 |
$7,793 | $0.00 | $7,793 |
| New home $650,000 |
$0.00 | $0.00 | no change |
| New home $700,000 |
$10,445 | $0.00 | $10,445 |
| New home $800,000 |
$31,335 | $0.00 | $31,335 |
| New home $900,000 |
$35,835 | $20,168 | $15,668 |
| Existing home $650,000 |
$0.00 | $0.00 | no change |
| Existing home $800,000 |
$31,335 | $31,335 | no change |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.