The NSW Government will reduce stamp duties on newly built homes and vacant land for eligible first home buyers from 1 August 2020.
The threshold above which stamp duty will be charged on new homes for eligible first home buyers will increase from $650,000 to $800,000, and concession on higher values will be reduced before phasing out at $1m. The stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000.
The changes, announced as part of the NSW Government’s COVID-19 recovery plan, will apply to contracts executed from 1 August 2020 to 31 July 2021. The changes will be available to first home buyers who purchase a new home or a vacant block of land on which they intend to build a new home. The changes will not apply to existing homes.
Indicative tax threshold changes from 1 August 2020 to 31 July 2021
| Property type | Existing stamp duty amount for eligible first home buyers | New stamp duty amount for eligible first home buyers | Saving |
| Vacant land $350, | $0 | $0 | No change |
| Vacant land $400,000 | $7,793 | $0 | $7,793 |
| New home $650,000 | $0 | $0 | No change |
| New home $700,000 | $10,445 | $0 | $10,445 |
| New home $800,000 | $31,335 | $0 | $31,335 |
| New home $900,000 | $35,835 | $20,168 | $15,668 |
Source CCH
