New South Wales is set to more than double the first home buyer’s grant and increase stamp duty exemptions, according to the latest state budget.
Buyers of newly-built and off-the-plan homes will have access to a $15,000 bonus and a new grant of $5,000 to all non-first homebuyers who purchase new properties up to $650,000.
State treasurer Mike Baird made the announcement in his budget speech yesterday claiming it is the most generous scheme in Australia.
“For too long, housing supply did not keep up with demand in NSW. Construction of new homes sat at record lows.”
Owners of a new home worth $550,000 would receive over $35,000 in stamp duty concessions and grants, over $19,000 more than under the old scheme, according to budget documents.
The grant will drop from $15,000 to $10,000 in 2014.
"This scheme targets incentives where they are needed most, by shifting incentives to new homes," Mr Baird told parliament.
Mr Baird said the New South Wales economy is expected to grow by around 2.25 per cent in 2012/13, below the national rate of gross domestic product (GDP) growth, up from 1.75 per cent in 2011/12.
A summary of the changes from yesterdays budget announcement is as follows:
New Home Grant Scheme
From 1 July 2012, a new $5 000 grant will be provided to buyers of new homes, whether off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000. The grant is targeted at all non-first homebuyers and is available to investors as well as owner occupiers. The grant will be administered through the transfer duty payment process.
First Home Owner Grant (New Home) Scheme
From 1 October 2012, the First Home Owner Grant Scheme will be replaced by the First Home Owner Grant (New Home) Scheme. The new scheme will only apply to first homebuyers who purchase or build a new home valued at up to $650,000. The grant will increase from $7 000 to $15,000 from 1 October 2012 to 31 December 2013 and to $10 000 from 1 January 2014.
First Home – New Home
From 1 July 2012: The transfer duty exemption cap on new homes increases to $550,000 with duty concessions for new homes valued between $550,000 and $650,000 The transfer duty exemption cap on vacant land increases to $350,000 with duty concessions for vacant land valued between $350,000 and $450,000
Deferred abolition of duties
The abolition of marketable securities duty on unquoted marketable securities has been deferred until 1 July 2013. The abolition of duty on mortgages has been deferred until 1 July 2013. The abolition of transfer duty on non-land business assets has been deferred until 1 July 2013.