NSW Overhauls Property Tax System
- 02 June 2017
New South Wales has announced plans to slash state-based stamp duty for first time buyers and double state-based foreign investor surcharges.
If passed, the proposals will:
- Increase the foreign investor surcharge on stamp duty from four percent to eight percent, and the surcharge on land tax from 0.75 percent to two percent, from July 1, 2017. Foreign developers will be exempt from the increased surcharges;
- Abolish all stamp duty for first homebuyers on existing and new homes up to AUD650,000, and introduce a discount for properties worth up to AUD800,000. The changes will apply from July 1, 2017;
- Abolish the nine percent insurance duty on lenders' mortgage insurance from July 1, 2017;
- Introduce a AUD10,000 First Home Owners Grant for builders of new properties worth up to AUD750,000 and purchasers of new properties worth up to AUD600,000; and
- Abolish the 12 month off-the-plan transfer duty concession for all residential purchases by investors from July 1, 2017.
The proposals were announced on June 1 2017 by New South Wales Premier Gladys Berejiklian, Treasurer Dominic Perrottet, and Housing Minister Anthony Roberts and are part of a package designed to improve housing affordability.