NSW Home Builders Bonus

NSW HOME BUILDER’S BONUS

Zero stamp duty – Australian-first Home Builder’s Bonus property initiative saves NSW families up to $29,490

People who purchase a new home off-the-plan before the start of construction will pay no stamp duty under a $140 million property construction initiative announced today by NSW Treasurer Eric Roozendaal.

NSW families and investors can save up $22,490 under the Keneally Government’s new Home Builder’s Bonus program – and first home buyers will receive benefits of up to $29,490.

“This is an Australian-first, signalling the Keneally Government’s commitment to boosting the state’s housing construction sector and building for the future of NSW,” Mr Roozendaal said.

Under the NSW Home Builder’s Bonus, from July 1, 2010:

Zero stamp duty – Australian-first Home Builder’s Bonus property initiative saves NSW families up to $29,490

People who purchase a new home off-the-plan before the start of construction will pay no stamp duty under a $140 million property construction initiative announced today by NSW Treasurer Eric Roozendaal.

NSW families and investors can save up $22,490 under the Keneally Government’s new Home Builder’s Bonus program – and first home buyers will receive benefits of up to $29,490.

“This is an Australian-first, signalling the Keneally Government’s commitment to boosting the state’s housing construction sector and building for the future of NSW,” Mr Roozendaal said.

Under the NSW Home Builder’s Bonus, from July 1, 2010:

Pre-construction stage

• Stamp duty will be cut to zero for off-the-plan home purchases worth up to $600,000 – a saving of up to $22,490.

• The zero stamp duty will only apply prior to any construction commencing on house and land packages or new apartments.

Under construction

• Stamp duty will be cut by 25 per cent for people buying a newly-constructed home worth up to $600,000 – a saving up to $5,623.

• The 25 per cent stamp duty cut applies to home purchases made at any time during the construction period, or at completion.

First home buyers

• First home buyers will also be eligible for these stamp duty cuts, giving them total benefits of up to $29,490

• They will still be able to access the NSW Government-funded $7000 First Home Owners Grant as well as the NSW Home Builder’s Bonus.

Empty-nesters

• Stamp duty for people aged over 65 will be cut to zero when they purchase a newly-constructed home worth up to $600,000 – a saving up to $22,490.

• This will only apply to people aged over 65 selling their primary place of residence and moving to a newly-constructed home, to encourage down-sizing and to encourage the regeneration of the state’s housing stock.

Mr Roozendaal said the off-the-plan initiative is open to anybody purchasing a new house or apartment, including investors, and is designed to boost the state’s property and housing construction sectors.

The NSW Home Builder’s Bonus will run for two years from July 1, 2010.

The NSW housing sector is worth about $17 billion a year and makes up almost 5 per cent of the state’s economy.

Construction in the state’s private housing sector has increased 3.2 per cent since the March quarter of 2009, as the industry recovers from the global financial crisis.

“These initiatives build on the Keneally Government’s commitment to improve housing supplies in NSW and boost housing construction rates – a key driver of economic growth,” Mr Roozendaal said.

“Developer financing has been identified as a major roadblock to boosting the rate of new home construction, especially for apartment developments.

“In encouraging people to buy off-the-plan and to buy early, builders will have a better chance of securing finance from banks and other financial institutions.”

Mr Roozendaal said the success of the Housing Construction Acceleration Plan announced in last year’s Budget had sparked the creation of the NSW Home Builder’s Bonus.

“Dwellings worth more than $1.6 billion have been sold so far under HCAP, which changed the housing construction sector in NSW,” Mr Roozendaal said.

“Around 3700 applicants, including investors, have taken advantage of the 50 per cent stamp duty cut under HCAP, putting around $28 million worth of stamp duty back into their pockets”. (As at May 30).

“More importantly, it stimulated construction activity, supporting jobs for builders, plumbers, landscapers, carpenters and more.

“The Home Builder’s Bonus is more than a worthy successor which will deliver further investment in the NSW housing construction sector.”

JUNE 8, 2010