» NSW Budget Cuts Stamp Duty

The NSW government made a surprising move to remove stamp duty fees on new properties. This move has been commended by experts in the property industry as a stepping stone towards the removal of chronic housing shortages in the state.

From 1st July 2010, stamp duty will be removed for the next two years for any off the plan purchase up to $600,000.  This will be a saving of up to $22,490 for home buyers.

A 25 per cent stamp duty discount will apply to homes under construction or newly completed worth up to $600,000.  Stamp duty will also be abolished for the next two years for over 65′s who sell their home to move to a newly constructed dwelling worth up to $600,000.

Commenting on this new provision, the Housing Industry Association anointed it as the needed boost for the residential building industry. HIA Executive Director Graham Wolfe said that the stamp duty savings can entice new home buyers such as growing families or investors to seek a property as soon as possible.

NSW Treasurer, Eric Roozendaal said that they have projected a boost of $64 million for the housing construction sector and this made stamp duty rate cuts possible.  The NSW government also announced that they will assist local councils who are experiencing funding shortages by handing them interest-free loans worth $200 million to speed up the process of infrastructure building. Wolfe said that this move is very vital for delays in housing construction can have a negative effect to the NSW’s goal of attracting home buyers.

Meanwhile, Roozendaal said that the Local Infrastructure Fund that is worth $200 million will go to the construction of delayed projects due to lack of funds. Roozendaal added that shovel-ready projects will be prioritized to have them completed as soon as possible. For this fund, local councils can apply for loans for the construction of local roads and the improvement of drainage systems.