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More than 6,000 recipients have benefited from New South Wales stamp duty relief measures over the last six months.
State Premier Gladys Berejiklian has commented on the latest housing data that showed the number of stamp duty exemptions and partial concessions gifted to first home buyers rose by 30 per cent over 2020.
She said the data indicated that the great Australian dream of home ownership remains strong: more than 41,000 exemptions and concessions were granted in 2020, after 31,500 were granted in 2019.
From her perspective, “additional stamp duty relief has delivered the twin benefit of helping more people achieve their dream of home ownership, while continuing to boost the economy”.
Treasurer Dominic Perrottet has also weighed in, conceding that stamp duty “is a significant financial barrier to those buying a first home”.
He stated that the state program has helped “thousands of people go from renters to home owners without saving for years to pay stamp duty”, and highlighted that first home buyers — as a share of the total owner-occupier residential market — have increased from below 15 per cent to around 30 per cent.
“Record-low interest rates are putting upwards pressure on prices, but it’s clear if we can lower the financial burden, the dream of home ownership burns as strong as ever,” Mr Perrottet said.
COVID-19 stamp duty relief saw the state put into place several temporary changes to “cushion the worst economic impacts of the pandemic”, as noted by the Premier.
Those changes saw the cap on the value of new homes at which stamp duty exemptions apply increased from $650,000 to $800,000. Concessional duty has also been applied up to $1 million — the point at which the scheme phases out.
Vacant land purchases also attract discounts, with the threshold for a stamp duty exemption increased from $350,000 to $400,000, and concessional duty rates applicable for purchases up to $500,000.
The COVID-19 relief measure will only be accessible until 31 July 2021.
Quick facts:
According to the NSW Treasury, stamp duty adds around $34,000, on average, to the upfront cost of buying a home in New South Wales.
In 2021, it takes the average person around 12.6 years to save for a deposit. In 1990, it took eight years.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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