As part of its COVID-19 Recovery Plan, the NSW Government increased the stamp duty
thresholds for purchasing new homes and vacant land under the First Home Buyer
Assistance Scheme (FHBAS) for 12 months from 1 August 2020.
The thresholds during that period were increased as follows:
- A new home valued at less than $800,000 was eligible for a full stamp duty
exemption. A new home valued between $800,000 and $1,000,000 was eligible for a
concessional rate of duty; - Existing homes valued at less than $650,000 are eligible for a transfer duty
exemption. Existing homes valued between $650,000.00 and $800,000.00 are
eligible for a concessional rate of duty; and - Vacant land valued at less than $400,000 was eligible for a stamp duty exemption. Vacant land valued between $400,000 and $500,000 was eligible for a concessional
rate of duty.
From 1 August 2021, the thresholds reverted back to what they were prior to the introduction of the COVID-19 Recovery Plan. These thresholds are as follows (prior thresholds):
- New homes valued at less than $650,000 are eligible for a full transfer duty
exemption. New homes valued between $650,000.00 and $800,000.00 are eligible
for a concessional rate of duty; - The thresholds for exemptions and concessions for existing homes remains
unchanged; and - Vacant land valued at less than $350,000 is eligible for a transfer duty exemption.
Vacant land valued between $350,000 and $450,000 are eligible for a concessional
rate of duty.
Any contracts exchanged on and from 1 August 2021 that are eligible for the FHBAS will be subject to the prior thresholds.
It is not clear at this stage whether or not the NSW Government has considered extending
the increased thresholds in light of the current COVID-19 situation in Sydney.
The changes are important for all First Home Buyers because the current exemptions and
allowances available will assist First Home Buyers that are trying to get into the property
market.
If you are unsure whether you will be affected by this change in thresholds, please contact
the Osborn Law Property and Commercial team.
