KEY TAKE-OUTS
- First-home buyers will pay more in duty from 1 August 2021 as the current thresholds for new homes and vacant land revert to the thresholds introduced on 1 July 2017.
Attention first-home buyers! The thresholds for exemptions and concessions from duty are changing…but not in the way you might think.
The current thresholds for exemptions and concessions from duty will revert to the thresholds introduced on 1 July 2017.
Currently, for the purchase of new homes and vacant land, the thresholds are as follows:
| New homes | Vacant Land |
|
|
But, in less than 3 weeks, from 1 August 2021, the thresholds will reduce as follows:
| New homes | Vacant Land |
|
|
So what does this look like practically speaking?
For a new home:
| Purchase price | Duty payable pre-1 August 2021 | Duty payable after 1 August 2021 |
| $660,000 | $NIL | $2,100.47 |
| $799,000 | $NIL | $31,018.95 |
| $850,000 | $10,071.75 | $33,477.00 |
| $915,000 | $23,139.02 | $36,402.00 |
For vacant land:
| Purchase price | Duty payable pre-1 August 2021 | Duty payable after 1 August 2021 |
| $360,000 | $NIL | $1,565.70 |
| $399,000 | $NIL | $7,593.93 |
| $450,000 | $8,873.50 | $15,477.00 |
For existing homes, the thresholds will remain the same and are set out below:
- Valued less than $650,000 receive an exemption from duty
- Valued between $650,000 and $800,000 receive a discount from duty calculated on a sliding scale
- Valued $800,000 or more, pay full duty
Eligibility criteria and living requirements still apply so please contact me for more information.
This poses the question — is the NSW Government out of touch with rising property prices? If you answered yes, you are not alone in thinking so.
ABOUT MELINA COSTANTINO
Melina has over 9 years of experience as a Licensed Conveyancer, acting for client matters involving; purchase and sale of residential and commercial property, Retirement Village Contracts, Put & Call Options, Call Options, and Family Transfers. She is passionate about helping a wide range of clients across all aspects of the buying and selling process and ensuring that her clients meet all their legal obligations.
For further information please don’t hesitate to contact:
Melina Costantino
Licensed Conveyancer & JP
melina@couttslegal.com.au
1300 268 887
Contact Our Coutts today.
This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.
