Another Win For First Home Buyers!

From tomorrow, 1 August 2020, new changes to the stamp duty threshold will result in a wider range of properties being exempt from stamp duty.

The changes will only apply to newly built homes and vacant land. The threshold for existing homes will remain the same.

Currently, newly built homes with a price of up to $650,000 are exempt from stamp duty. The new changes will increase the threshold to $800,000. The threshold for a concession of stamp duty on newly built homes has also increased, phasing out at $1,000,000.

Vacant land properties with a price of $350,000 are currently exempt from stamp duty. This price will be increased to $400,000. Again, stamp duty concession thresholds for vacant land have increased, phasing out at $500,000.

The changes will last for a 12-month period, commencing 1 August 2020, and will result in first home buyers saving up to $31,335 worth of stamp duty on newly built $800,000 homes.

The NSW Government forecasts the changes will support new home construction, create jobs and benefit more than 6,000 first home buyers. The NSW Government have created the below table outlining the changes:

Property typeExisting stamp duty 
amount for eligible
first home buyers
New stamp duty
amount for eligible
first home buyers
Saving
Vacant Land
$350,000
$0.00$0.00no change
Vacant Land
$400,000
$7,793$0.00$7,793
New home
$650,000
$0.00$0.00no change
New home
$700,000
$10,445$0.00$10,445
New home
$800,000
$31,335$0.00$31,335
New home
$900,000
$35,835$20,168$15,668
Existing home
$650,000
$0.00$0.00no change
Existing home
$800,000
$31,335$31,335no change

If you have any questions in relation to the above or would like further information regarding the stamp duty changes, please contact our Property Team.