50% stamp duty cut comes into effect tomorrow

30 June 2009

Premier Nathan Rees said a 50 per cent stamp duty cut under the NSW Housing Construction Acceleration Plan comes into effect from tomorrow.

The stamp duty cut is worth up to $11,245 for people buying newly-constructed dwellings and is a massive shot in the arm to the state’s housing sector.

“This is an investment in NSW jobs,” Mr Rees said.

“Under the bold initiative announced in the NSW Budget, stamp duty will be cut by 50 per cent per dwelling for people buying newly-constructed properties worth up to $600,000 – including property investors.

“The saving is worth up to $11,245 a property.

“While this package is not for first home buyers they continue to be eligible for massive grants and stamp duty concessions including the $3,000 boost to the first homebuyers grant – saving up to $41,990”

Treasurer Eric Roozendaal said the NSW Housing Construction Acceleration Plan is a $64 million targeted stimulus which will run for at least six months, to be reviewed on December 31, 2009.

“This is a massive shot in the arm for the state’s new home construction industry,” Mr Roozendaal said.

“For the first time, the NSW Government is targeting a housing stimulus to people outside the first home buyer market, including investors, to stimulate the construction and purchase of new properties.

“Our stimulus package will boost the NSW housing market and the property development industry by encouraging people buying property to consider buying a newly constructed property.”

The program will include house and land packages, buying off-the-plan as well as recently-constructed homes, where the transaction is the first sale of that home since its construction.

Mr Rees said that the program provides a strong incentive for property buyers to consider buying a new property, with more than 80 per cent of NSW home sales under $600,000.

“The NSW Housing Construction Acceleration Plan is in addition to the NSW Government’s extension of the $3000 first home buyer supplement for newly-constructed homes, announced last November, until at least the end of June 2010,” Mr Rees said.

Mr Roozendaal said $11 million has been allocated in the Budget to the extension of the $3000 supplement, taking to $75 million the NSW Government’s new investment in stimulating the housing sector in the 2009-10 Budget.

NSW first home buyers currently receive up to $41,990 in grants and stamp duty cuts – among the most generous in Australia.

Full details are available at www.osr.nsw.gov.au