Home buyers in New South Wales have been buoyed by a surprise halving of stamp duty commitments in what the state government has entitled the Housing Construction Acceleration Plan.
In the state’s budget, handed down yesterday, state treasurer Eric Roozendaal said people buying homes under $600,000 would be offered a 50% reduction in stamp duty, effective from the new financial year.
With 82% of all properties sold in NSW coming in under the $600,000 mark, Mr Roozendaal said this cut would help kick start the property market.
“This is a building and jobs bonanza. A $64 million kick start for the housing construction industry that will support employment in every part of the state – and put up to $11,245 straight back into the pockets of home buyers and investors,” he said.
While most first home buyers already avoid stamp duty, the threshold in this instance was also increased from $500,000 to $600,000.
The state government’s $3,000 first home buyer contribution has also been extended to end June 2010.
Meanwhile yesterday’s Queensland budget included the removal of transfer duty for first home buyers on blocks of land worth up to $250,000 – up from $150,000.
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