- New South Wales is putting a hold on stamp duty as it aims to boost house construction and jobs amid the coronavirus pandemic, the Sydney Morning Herald reported.
- Stamp duty is a government tax paid on top of a home’s purchase price.
- Additional changes will be made during this halt, with the threshold for stamp duty on new homes rising from $650,000 to $800,000.
- Visit Business Insider Australia’s homepage for more stories.
New South Wales Premier Gladys Berejiklian is temporarily halting stamp duty on new homes under $800,000 for first home buyers, as a way to help create employment and support housing construction during the pandemic, the Sydney Morning Herald reports.
Stamp duty is a one-off government tax paid on top of a home’s purchase price – often an extra cost of tens of thousands of dollars.
More than 6000 first home buyers are expected to benefit from the halt on stamp duty. It is set to boost construction and job creation in the state.
“Thousands of people will see their bank balances benefit from this change – it will help get more keys into more front doors of more new homes,” Berejiklian said, according to the SMH.
The state government’s changes mean the threshold on stamp duty will rise from $650,000 to $800,000 and the concession will drop on higher values, ending at $1 million.
The threshold will also rise on vacant land – from $350,000 to $400,000 – before ending at $500,000.
These changes, however, are only for newly built homes and vacant land. They kick off on August 1 and will last for 12 months.
The median house price in Sydney and Melbourne – Australia’s most expensive capital cities – generates stamp duties above $40,000, a figure that has tripled since 2004.
New South Wales will also continue its $10,000 first homeowner grant for people either building a new home worth up to $750,000 or buying a new home worth up to $600,000.
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