Authority Update - NSW State Budget 2017 Announced

As part of the 2017 State Budget the NSW Treasurer has announced a range of measures to improve housing affordability such as abolishing and reducing duty for First Home buyers.

The budget also has changes to Surcharge Purchaser Duty, Surcharge Land Tax and Insurance Duty.

A summary of these changes is below or for more information visit http://www.osr.nsw.gov.au/info/legislation/budget/201706

Duties 

  • First Home Buyers Assistance
    From 1st July 2017 first home buyers will not have to pay duty for both new and existing homes for properties up to $650,000. The duty will be reduced for amounts between $650,000 and $800,000. There is no change to the cap for vacant land.
  • Shared Equity Scheme
    From 1 July 2017, the shared equity scheme applies where a home buyer purchases a property with an approved equity partner. This scheme helps people who may not otherwise be able to afford their home on their own to become a home owner by purchasing with an equity partner.
  • New Home Grant Scheme
    The New Home Grant scheme, providing a $5,000 New Home Grant will close on 30 June 2017.
  • First Home Owner Grant (New Homes) from 1 July 2017
    First home owners can access a $10,000 grant for:
    • building a new home under a home building contract where the contract price, when added with the land value, does not exceed $750,000
    • a new home being built by an owner builder where the value of the land and building does not exceed $750,000 or
    • purchasing a new home worth up to $600,000.
  • Purchases 'off the plan' by investors
    From 1 July 2017, all residential purchases by investors will be excluded from the 12 month off the plan transfer duty liability deferral.

Land tax

  • Principal place of residence
    The principal place of residence exemption will be extended to land used and occupied by an owner under a shared equity scheme as defined above. The exemption will apply from the 2018 tax year.

Surcharge purchaser duty

  • Rate of duty
    From 1 July 2017, the surcharge purchaser duty rate will increase from 4 per cent to 8 per cent.

Surcharge Land Tax

  • Rate of tax
    From the 2018 tax year, the surcharge land tax rate will increase from 0.75 per cent to 2 per cent.

Commercial residential property

  • From 2018 tax year, commercial residential property will be exempt from surcharge land tax.

To attend a State Taxes Update seminar, covering the recent amendments to legislation visit the OSR calendar of events at http://www.osr.nsw.gov.au/info/news/seminar-20170614

If you have any questions about these seminars, please contact Arlene Fernandez on 02 9689 6138 or email client.education@osr.nsw.gov.au.

Read more of New South Wales Authority Updates

Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.