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Stamp Duty changes announced in...

Stamp Duty changes announced in New South Wales Budget

Significant changes to Stamp Duty have been announced in the 2017-18 Budget for New South Wales.
 
Delivered by the state's treasurer Dominic Perrottet earlier this week, the Budget featured several measures based around this tax, including the abolishment of Stamp Duty for first-time buyers purchasing homes in Australia worth up to $650,000. In addition, discounts on the tax will be available for those buying properties with a value of up to $800,000.
 
This is part of the government's commitment to making homes more affordable for first-time buyers, which has been a challenge amid the country's ongoing housing boom and rapidly increasing property prices.
 
What's more, the Stamp Duty that is often charged on lenders' mortgage insurance will also be scrapped, making conditions fairer for first-time buyers who have limited deposits.
 
However, for property investors from overseas, Mr Perrottet announced that a greater tax will apply to their purchases in the future. The government will be increasing the foreign investor surcharge on Stamp Duty from four to eight per cent, which will help to plug the gap in the economy left by taking these charges away from first-time buyers.
 
Moreover, property buyers from abroad who are investing in the Australian market will be faced with an extra two per cent surcharge on land tax.
 
Other property-related measures announced in the Budget include an extra $1.1 billion for social housing throughout the country, as well as $218 million for the ongoing maintenance of these properties.
 
Meanwhile, small business owners operating in Australia will no longer have to pay extra duties on commercial vehicle insurance, professional indemnity cover, and product and public liability insurance as of the start of next year, demonstrating that the country still wants to attract entrepreneurs from all over the world.
 

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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