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.
In addition to the new grants targeted at buyers of new homes, Mr Baird announced $181 million towards key infrastructure such as roads and sewage in ten key growth areas in outer suburban Sydney.
The money is intended to encourage developers to build new homes in those areas.
There is also a $50m “bribe” to local councils to speed up their development approvals.
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.