What the NSW Government’s housing affordability package means for you

Posted: 1 June 2017 5:20 pm
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The NSW Government has announced its mooted housing affordability measures. Here’s what they mean for you.

The NSW Government has announced a range of measures to assist first home buyers. Premier Gladys Berejiklian announced changes to stamp duty concessions aimed at helping buyers get into the market.

Under the new measures, from 1 July first time buyers will be exempt from stamp duty on properties costing up to $650,000 and will receive stamp duty discounts on properties costing up to $800,000. The concessions will be available for both new and existing properties. The NSW Government said the changes would save first home buyers $24,740.

The package also abolishes stamp duty on LMI, for an additional savings of around $2,900.

A rundown of all the changes

The NSW Government announced a range of measures to address housing affordability. Here’s a look at all the changes.

  • Stamp duty exemption for properties valued up to $650,000
  • Stamp duty discounts for properties valued up to $800,000
  • Stamp duty concessions extended to established houses
  • Stamp duty on lenders mortgage insurance (LMI) abolished
  • Stamp duty concessions for off-the-plan apartments eliminated
  • $5,000 grant for off-the-plan apartment purchases eliminated
  • 12 month stamp duty deferral for investors eliminated
  • First home owner grant for new homes capped at $600,000, down from $750,000
  • Stamp duty surcharge for foreign investors rises from 4% to 8%

Video summary of the NSW housing affordability package

The package also takes aim at levelling the playing field between owner occupiers and investors. Stamp duty concessions for off-the-plan properties will be axed, as will the option for investors to defer paying stamp duty for 12 months.

Foreign investors will also be hit by new levies. The stamp duty surcharge for foreign investors will rise from 4% to 8%.

Your guide to NSW stamp duty

While the government’s package handed first time buyers a number of stamp duty concessions, it tightened eligibility for the $10,000 NSW first home owner grant. While the eligibility cap for first home buyers constructing a new home will remain at $750,000, the cap for those buying a new home will fall from $750,000 to $600,000.

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18 Responses

    Default Gravatar
    KirstyJune 28, 2017

    Is the following rule still applicable as of 1st July 2017? “You must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home and the minimum period of occupancy is six continuous months.”

      Avatarfinder Customer Care
      JhezJune 28, 2017Staff

      Hi Kirsty,

      Thanks for your comment.

      Yes, that still is one of the eligibility criterias for FHOG. You may check this page for your step-by-step guide to the First Home Owners Grant.


    Default Gravatar
    StevoJune 17, 2017

    Hi there, I’m looking at purchasing a older house for $670,000 so my question is how much would the discount be as it’s over the $650k. Thanks

      Default Gravatar
      JonathanJune 17, 2017

      Hi Stevo!

      Thanks for the comment.

      You can use the table posted on this page for your estimate.

      If you have any further clarification, you can contact NSW Office of State Revenue at Phone +61 2 9689 6200 – Interstate and international clients 8.30am – 5.00pm Monday to Friday.

      Hope this helps.


    Default Gravatar
    AliJune 14, 2017

    My husband and I have purchased our first home. We have signed the contract but it doesn’t settle until August 1st. I owned a home many years ago. Are we eligible?

      Default Gravatar
      JonathanJune 14, 2017

      Hi Ali!

      Thanks for the comment.

      Here are some eligibility details for the First Home Owners Grant that may answer your question.

      1. You must be a first home buyer as a person, not as a company or trust.
      2. You or your spouse, partner or co-purchaser must not have previously owned an interest in land in Australia which had a residence on it, before 1 July 2000.
      3. You or your spouse or partner cannot have lived in a residential property which you owned from 1 July 2000
      4. You or your spouse, partner or co-purchaser may not have claimed the grant previously.

      You can read more about that here.

      You may also contact ATO at 13 28 61 8am-8pm, Monday-Friday and 10am-4pm local time on Saturday except national public holidays for further details.

      Hope this helps.


    Default Gravatar
    MakaJune 13, 2017

    How does it work for first home buyers buying vacant land after 1st July? Presently there is no stamp duty up to 300k and discounted duty up to 450k.
    Is there any change for these brackets?

      Default Gravatar
      JonathanJune 14, 2017

      Hi Maka!

      Thanks for the comment.

      From 1 July 2017, stamp duty concessions for first home buyers will apply both to new and established housing. First time buyers will be exempt from stamp duty for homes valued up to $650,000, while concessions will be available valued up to $800,000.

      You may refer to this page for further information.

      Hope this helps.


      Default Gravatar
      MakaJune 15, 2017

      Hi Jonathan
      Thanks for your response. My question was specific to land only deals. Is there any change to the existing 350k stamp duty waiver and discounts upto 450k of land prices??


      Avatarfinder Customer Care
      MayJune 15, 2017Staff

      Hi Maka,

      Thank you for your inquiry.

      To date, with New Home scheme in NSW, eligible purchasers buying a vacant block of residential land to build their home will pay no duty on vacant land valued up to $350,000, and will receive concessions for vacant land valued between $350,000 and $450, 000. You’d be best that you visit your local government’s OSR website for more details and updates on the scheme.


    Default Gravatar
    RoselinJune 12, 2017

    We have signed a contract to buy one house of $500000, end of last months in nsw. We are first home buyer though the properties is not new. Our settlement due on 18 of June. Are we eligible to get stamp duty free, if we settled after 1st of July.

      Avatarfinder Customer Care
      DeeJune 13, 2017Staff

      Hi Roselin,

      Thanks for your question.

      Currently, FHOG and stamp duty exemption for NSW only apply to new and substantially renovated homes. However, effective 1st July, they will already include established homes.

      Kindly note that the stamp duty exemption will depend on your eligibility for FHOG. Since you mentioned that you signed a contract before July and that the property you are buying is not new, you may have to directly get in touch with the government agency in your state that handles FHOG to discuss your eligibility.


    Default Gravatar
    ZiaulJune 10, 2017

    I bought an old unit 2 months ago and this is my first home. Do I have any chance to get back my stamp duty? I borrowed from my friends and I don’t know how to pay that $17,000.

      Default Gravatar
      JonathanJune 10, 2017

      Hi Ziaul!

      Thanks for the comment.

      Some taxes and duties (including stamp duty) are administered by state and territory governments. Hence, you may need to ask your local state/territory revenue office. Kindly refer to the details below for your reference.

      New South Wales
      Phone: (02) 9689 6200
      Email: service@osr.nsw.gov.au
      Website: osr.nsw.gov.au
      Write: GPO Box 4042 SYDNEY NSW 2001

      Hope this helps.


    Default Gravatar
    PaulJune 8, 2017

    I have recently purchased an investment unit in NSW which is tenanted and doesn’t to live in. With the stamp duty exemptions coming in July 1, for first home buyers, when I do purchase my first home to live in? Would I qualify for the stamp duty exemption?

      Default Gravatar
      JonathanJune 8, 2017

      Hi Paul!

      Thanks for the comment.

      First Home Owner Grant (New Homes) scheme is applicable for first-time residential property buyers.

      Legislation for the new NSW housing affordability package is still on its way.

      Stamp duty exemption applies on properties costing up to $650,000.

      Should you need further details, you can reach ATO on this page.

      Hope this helps.


    Default Gravatar
    AbdulJune 7, 2017

    I bought my house 4 months ago for $671,000 and paid $25,700 for stamp duty. Can I take the money back? If yes, how much? Thanks.

      Default Gravatar
      JonathanJune 7, 2017

      Hi Abdul!

      Thanks for the comment.

      On current regulation, NSW exemption from stamp duty for new homes up to $500,000 and discounts for new homes valued between $500,000 and $600,000 is applicable.

      Alternatively, you may contact ATO at 13 28 61 8am-8pm, Monday-Friday and 10am-4pm local time on Saturday except national public holidays.

      Hope this helps.


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