News
2010/2011 NSW State Government Budget
This week the NSW State Government released the 2010/2011 State Budget. Highlights of this announcement for home buyers was the Stamp Duty relief by way of the “Home Builders Bonus” for a two year period in an effort to increase the State’s housing construction sector.
First home buyers will receive benefits of up to $29,490, while families and investors can receive up to $22,490 in stamp duty relief. The NSW Home Builder’s Bonus will come into effect from 1 July 2010 for two years until 30 June 2012.
Stamp duty will be cut to zero for off the plan home purchases worth up to $600,000. This represents a saving of up to $22,490. This zero stamp duty is also available to property investors and only applies prior to any construction commencing.
For those buying a new home already in the construction phase or newly completed, they will be eligible for a 25 percent Stamp Duty cut. This is available to homes worth up to $600,000 and represents a saving of up to $5,623.
Eligible first home buyers continue to benefit from these incentives with the Home Builders Bonus and the $7,000 First Home Owners Grant.
Stamp duty will also be eliminated for the next two years for over-65s who buy and move into a newly-built dwelling worth up to $600,000 provided that they sell their existing home.
The last time the State Government released these stimulus packages over 2 years ago it had a positive effect on the building sector in Wagga Wagga, and it will continue to have a positive effect this time.
Fitzpatricks Real Estate expects “there will be a high take up of these incentives and they will cause a positive influence throughout other industries within our local economy including retail, automotive and finance” said Director Adam Drummond. Adam also went on to say “this will also encourage investors back into the market”.
The State Government also announced its new pay roll tax rate which will be reduced from 5.65% to 5.50% effective from 1 July 2010 and will be reduced further from 1 January 2011 to 5.45%. This will have a positive effect on small to medium business owners.