The Berejiklian government will temporarily axe stamp duty on new homes under $800,000 for first home buyers in a bid to boost construction and create jobs amid the COVID-19 crisis.
Premier Gladys Berejiklian said the government expected more than 6000 first home buyers would benefit from the changes, saving eligible first home buyers thousands of dollars.
Under the changes, the threshold for stamp duty being charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million. The stamp duty threshold on vacant land will also rise from $350,000 to $400,000 and will phase out at $500,000.
The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for 12-months, starting on August 1.
The state will also continue to offer a $10,000 first homeowner grant, which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000.
This means the maximum benefit a homeowner could be entitled to is $32,335 if purchasing a new home and accessing the grant.