Currently, first home buyers are eligible for a transfer duty exemption for new properties valued up to $650,000 but the threshold has now increased to $800,000.
Further, under the changes, the threshold for transfer duty exemptions on vacant land will increase from $350,000 to $400,000 and will phase out at $500,000.
The new changes will apply for a 12 month period, commencing on 1 August 2020 and are set to benefit thousands of first home buyers. These changes will save first home buyers transfer duty of up to $31,335 on a new home valued at $800,000.
In addition to the current changes, the NSW Government will continue to offer first home buyers $10,000 under the existing First Home Owner Grant Scheme if purchasing a new home worth no more than $600,000 or if buying land and building a new first home worth no more than $750,000 in total.
These changes will not, however, apply to the purchase of existing homes.
Currently, a first home buyer purchasing an existing home will be eligible for a transfer duty exemption for any property valued up to $650,000 and a discount on duty for any existing property valued between $650,000 and $800,000.
For more information in relation to these changes, please contact our Property team.