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In a bid to make buying a house in Sydney that little bit easier, the NSW government has announced that it will no longer charge stamp duty on homes that are "bought off the plan" for less than $600,000.
The change in state policy will cost the NSW government approximately $184 million in lost property taxes.
Stamp duty will be cut by 25 per cent on homes worth up to $600,000 that are bought during construction or at completion, translating into an average saving of $5,623.
The stamp duty changes are expected to be widely welcomed by NSW buyers, as 79.1 per cent of dwellings within the state are sold for under $600,000.
In addition, the government has also introduced other concessions on new home purchases and construction.
NSW Treasurer Eric Roozendaal said the $140 million property construction initiative will save NSW families and investors up $22,490, with first home buyers eligible to receive benefits of up to $29,490.
“This is an Australian-first, signalling the Keneally government’s commitment to boosting the state’s housing construction sector and building for the future of NSW,” Mr Roozendaal said.
NSW building industry body the Urban Taskforce said the government’s latest announcement shows a clear understanding of the need to increase housing supply in NSW.
“This plan is comprehensive – it offers real hope for homebuyers and renters,” Urban Taskforce chief executive officer Aaron Gadiel said.
According to Mr Gadiel, the targeted stamp duty concession is also a welcome message of support to older Australians and will help industry focus on meeting their housing needs.
“When older Australians make the decision to downsize, they will also be freeing up underutilized existing housing stock which can be occupied by younger families,” he said.