NSW State Budget 2017
As a result of the NSW Budget announced this week, significant changes to laws affecting NSW property buyers and owners will be introduced, most commencing 1 July 2017, including:
First Home Buyers
The First Home New Home scheme will be replaced by the First Home Buyers Assistance scheme, thereby extending assistance to first home buyers of new and existing homes. The $5,000 New Home Grant Scheme will be replaced by a $10,000 First Home Owner Grant.
Off The Plan
All off the plan purchases of residential properties by investors will be excluded from the 12 month stamp duty deferral that normally applies. Purchasers will need to declare an intention to occupy the property as their principal place of residence to obtain the deferral.
Shared Equity Scheme
A new scheme is to be introduced that will allow for a home buyer, who may not otherwise be able to afford a home on their own, to purchase with an approved equity party, who themselves will not have a right of occupation of the property. The key to the scheme is that the home buyer will be able to receive a subsequent transfer of the equity partner's interest without incurring stamp duty.
Surcharge Purchaser Duty and Surcharge Land Tax
The rate for surcharge purchaser duty, affecting foreign persons, will increase from 4 per cent to 8 per cent. The rate for surcharge land tax will increase from 0.75 per cent to 2 per cent. Commercial residential property will be exempt from surcharge purchaser duty and from surcharge land tax.
If you have any questions regarding these changes, please contact us on 02 8318 0723.