The NSW State Budget, handed down on 8 June 2010, has delivered a significant boost for the property industry by introducing the Country's first "zero" stamp duty initiatives and the implementation of caps on developer contributions.
Stamp duty incentives - 'Home Builders Bonus'
Under a two-year plan beginning 1 July 2010, no stamp dutywill be payable on off-the-plan contracts for sale of homes, in the pre-construction stage, worth up to $600,000.
There will be a 25 per cent cut in stamp duty for those who buy later in the development process, once construction starts or a home is newly completed.
First home owners will also be eligible for these stamp duty incentives, in addition to residual benefits under the existing scheme.
People aged over 65 purchasing newly-constructed homes worth up to $600,000 willalso pay no stamp duty.
This exemption applies irrespective ofthe stage of a home’s construction, however, will only apply to those people aged over 65 selling their primary place of residence.
Developer Contributions Cap
As part of the initiatives, the NSW State Government has introduced a $20,000 cap on local government development contributions for new residential dwellings, which came into force yesterday.
New 'ad valorem' tax
Contrary to the strategic objectives of the stamp duty initiatives and caps on developer contributions, the Government intends to proceed with the new 'ad valorem' tax on land and property transfers.
As of 1 July, 2010 the following rates will apply:
For further information please contact:
Sydney NSW 2000
T:61 2 8233 9603
Sydney NSW 2000
T:61 2 8233 9715
