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Win for First Home Owners - Updates from the 2017 State Budget

6 June 2017

From 1 July 2017 the NSW Government will introduce a long awaited range of new measures to assist first home buyers and housing affordability generally throughout NSW. Under current laws in NSW, first home buyers are only eligible for a stamp duty exemption on a purchase of a new home up to the value of $550,000 (and in the case of vacant land, a purchase up to the value of $350,000).

On 1 July 2017 major changes to the NSW stamp duty legislation, the Duties Act 1997, for new home buyers will include the following:
  • Abolishment of stamp duty on new homes up to the value of $650,000
  • Reduction of stamp duty for new homes valued between $650,000 and $800,000
  • Abolishment of Insurance duty payable on lender’s mortgage insurance
  • Introduction of a $10,000 grant under the First Home Owners Grant (New Homes) Scheme for builders of new homes up to the value of $750,000 and purchasers of new homes up the value of $600,000
These changes are designed to facilitate growth in the housing market and specifically to aid affordability for first home buyers. It is important to note the following requirements in order to be eligible for the First Home Owners Grant (New Homes) Scheme:
  • You or your spouse (including your husband or wife or de facto partner) must not have previously owned residential property in Australia (either solely or with someone else)
  • It must be the first time you or your spouse have received a grant in Australia
  • At least one applicant (either you or your spouse) must be an Australian Citizen
  • Each applicant must be a natural person. Companies, partnerships and persons acting in a trustee capacity are ineligible (unless the trustee is a guardian of a person under a legal disability, and the person with the legal disability will be occupying the home).
Author: Madeleine Hunt

Madeleine Hunt Business Lawyer

Madeleine is a Business Lawyer who works with the commercial group focusing on wills, power of attorney and guardianship appointments. Madeleine w.. Learn more about Madeleine Hunt

Contact Madeleine Hunt by email or call +61 2 6942 1655.


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