From the 1st of July, 2017, some major changes have gone live for stamp duty. Essentially, they're a part of the Government's push to make home ownership more possible for young people entering the market. The changes could have a serious impact on your own financial moves, if property ownership is important to your own long term planning, and they're worth considering.
Off the plan stamp duty concessions for investors are to be abolished
The first change is an amendment that removes the concession providing for a delay in the payment of stamp duty for up to one year after the date of purchase on an "off the plan" property. This concession originally made "off the plan" purchases a more attractive proposition, and mitigated some of the risks associated with it - but from July 1, that concession will no longer be possible.
First home buyers will receive new concessions and benefits
In addition to the removal of the concession, there are some new benefits and concessions being established for new home owners:
- First home buyers will be exempt from paying stamp duty on the purchase of property with a purchase price of up to $650,000.
- First home buyers will also receive a discount on their stamp duty on a property purchase of up to $800,000.
- First home buyers will be eligible for a grant of $10,000 for the purchase of a new home with a price of up to $600,000.
- Builders will be eligible for a grant of $10,000 for building a new home with a price of up to$750,000.
If you aren't aware of them, or haven't considered the impact they could have on your financial path, this is the ideal time to start examining your plans and learning more about the changes.