NSW Premier announces measures to support first home buyers
Hot on the heels of last month’s federal budget measures to tackle Australia’s growing housing affordability crisis, NSW Premier Gladys Berejiklian has announced long-awaited reforms to support first home buyers across the state.
Effective from 1 July, stamp duty exemptions and concessions for first home buyers will be extended to cover existing as well as new homes. First home buyers of all homes worth up to $650,000 will be spared hefty stamp duty fees, with discounts on stamp duty for homes worth up to $800,000.
The Premier has also abolished the stamp duty charged on lenders’ mortgage insurance, which is often required by banks to lend to first home buyers with limited deposits.
Treasurer Dominic Perrottet said the NSW Government would take advantage of its strong budget position to give a leg up to prospective first home buyers: “As a government, we have always focused on supporting first home buyers and this package takes it to the next level,” Perrottet says.
“We know how challenging it can be to enter the property market and are pleased to be providing even more financial support for people wanting to make their first purchase.”
Boost to housing supply and infrastructure
Further measures have also been announced to boost housing supply throughout Sydney and parts of regional NSW and to deliver infrastructure to support growing communities across the state. This includes a new $3 billion commitment in infrastructure funding.
“These measures focus on supporting first home buyers with new and better targeted grants and concessions, turbocharging housing supply to put downward pressure on prices and delivering more infrastructure to support the faster construction of new homes,” explains Premier Berejiklian.
“This is a complex challenge and there is no single or overnight solution. I am confident these measures will make a difference and allow us to meet the housing challenge for our growing state,” she adds.
The NSW Government housing affordability reforms include these key measures:
- Abolishing all stamp duty for first home buyers on existing and new homes up to $650,000 and stamp duty discounts up to $800,000. These changes, to be introduced on July 1 2017, will provide savings of up to $24,740 for first home buyers
- Abolishing the stamp duty charged on lenders’ mortgage insurance, which is often required by banks to lend to first home buyers with limited deposits, providing a saving of around $2,900 on an $800,000 property
- Doubling the foreign investor surcharge from four per cent to eight per cent on stamp duty and 0.75 per cent to two per cent on land tax
- Removing stamp duty concessions for investors purchasing off the plan
- Committing $3 billion in infrastructure funding from government, councils and developers to accelerate the delivery of new housing
- Fast-tracking approvals for well-designed terraces, townhouses, manor homes and dual occupancy by expanding complying development to include these dwelling types
- Greater use of independent panels for councils in Sydney and in some regional areas to ensure development applications are done efficiently and to ensure the integrity of the planning process
- Measures to maintain the local character of communities
Further information on the NSW Government’s housing affordability package can be found at www.nsw.gov.au/housingaffordability