First Home Buyer? The Clock is Ticking as Thresholds are Scheduled to Reduce!

29 JUL 2021

 

As part of the NSW Government’s COVID-19 Recovery Plan, the stamp duty thresholds for the purchase of new homes and vacant land under the First Home Buyer Assistance Scheme (FHBAS) were increased for a 12 month period between 1 August 2020 and 31 July 2021.

In summary, the thresholds from 1 August 2020 and 31 July 2021 were increased as follows:

  • New Homes valued at less than $800,000 were eligible for a stamp duty exemption. New homes valued between $800,000 and $1,000,000 were eligible for a concessional rate of duty; and 
  • Vacant Land valued at less than $400,000 were eligible for a stamp duty exemption. Vacant land valued between $400,000 and $500,000 were eligible for a concessional rate of duty. 

From 1 August 2021, the thresholds will revert to the previous parameters as follows:

  • New Homes valued at less than $650,000 will be eligible for a transfer duty exemption. New homes valued between $650,000.00 and $800,000.00 will be eligible for a concessional rate of duty;
  • Vacant Land valued at less than $350,000 will be eligible for a transfer duty exemption. Vacant land valued between $350,000 and $450,000 will be eligible for a concessional rate of duty; and
  • Existing Home thresholds remain unchanged.

Therefore, any Contracts exchanged on and from 1 August 2021 that are eligible for the FHBAS will be subject to the above thresholds. 

In light of these changes, any First Home Buyers that are currently in the process of purchasing a property should use their best efforts to ensure Contracts are exchanged prior to 31 July 2021 to take advantage of the current thresholds.

The above changes are important for all First Home Buyers as the current exemptions and concessions available will assist First Home Buyers that are trying to get into the property market. 

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.

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