Browse Forums Home Finance Re: STAMP DUTY TO BE ABOLISHED???????? 2Jun 25, 2009 3:24 pm I just read the same article. It's a bit thin on details, have the governments set a timeline for this? How does it affect those of us who are currently getting finance for a new building project? Blog : http://ournewhaven.blogspot.com/ (Modified Newhaven - Homestead Homes) Status : DA - Dec 09. Slabbed - Jan 10. Handover - Aug 10 Re: STAMP DUTY TO BE ABOLISHED???????? 3Jun 25, 2009 3:28 pm Another article from a few days ago. http://www.brisbanetimes.com.au/nationa ... -cgk4.html Quote: New stamp duty discount lures home buyers Jonathan Chancellor Property Editor June 17, 2009 INVESTORS wanting an alternative to the sharemarket are being enticed back into the lethargic property market with a halving of stamp duty on purchases of new dwellings costing less than $600,000. The discount is available only until December 31, unlike the nine-year first-home owner tax break, which has been extended by the State Government until at least June 30 next year. The 50 per cent stamp duty cut, to begin from July 1 and worth up to $11,245, could quickly prompt many potential home buyers out of hibernation to buy a second property or upgrade existing homes. Retirees who have felt trapped in established homes would be expected to take advantage of the offer by downsizing into newly constructed smaller homes. The initiative, which will reduce duty on a $400,000 purchase by $6745 and on a $500,000 purchase by $8995, has been offered as the hyperactive first-home buyer segment has shied away from newly built homes. About 90 per cent of first-home buyers have bought established houses and units, according to NSW Treasury. The State Government hopes the $64 million measure will activate the overall property market and revive stamp duty revenue, which has fallen from an anticipated $3.8 billion to just $2.64 billion during the current financial year. Residential buyer inactivity contributed $625 million of the $1.1 billion shortfall, with a further $100 million decrease arising from lower residential property prices. Stamp duty, which provides about 15 per cent of all NSW taxation revenue, is expected to rise to only $2.73 billion next financial year, despite a forecast by Treasury that prices would recover as interest rates remained low. But the budget papers envisage revenues will to rise to $3.93 billion in 2010-11, in what would be the fastest rebound in transfer duties in 24 years. Leanne Pilkington, general manager of the real estate agency Laing + Simmons, said: "Considering the NSW Government is relying on the recovery of the property sector to bring the state budget into surplus again by 2011-12, they might have to look at extending the time frame of this announcement if they want to see long term economic impacts." The stamp duty reduction will be available for newly built houses and units, house and land packages, and current stock of unsold new homes and units that have never been occupied. It is also available for off-the-plan purchases. "This is a massive shot in the arm for the state's new-home construction industry," said the Treasurer, Eric Roozendaal. "This measure will benefit anyone buying a new dwelling including empty nesters, growing families who need more room, and 'mum and dad' investors seeking the security of bricks and mortar." The measure, dubbed the Housing Construction Acceleration Plan, is expected to boost construction by about 15 per cent next financial year. The number of construction starts on homes in NSW has fallen since 2002, when work started on 48,000 homes. The current annual number under construction is about 26,900 homes. About 82 per cent of NSW properties are sold for less than $600,000. The new measure does not affect first-home buyers, who will continue to receive $24,000 in NSW and Federal Government grants for a $600,000 home purchase. First-home buyers in NSW can now receive total benefits of $41,990 in grants and stamp duty exemptions. The stamp duty reduction was the strongest measure taken by any government in Australia to support new home construction, the Urban Taskforce said. The NSW budget's robust support for residential construction was unprecedented, said the taskforce's chief executive, Aaron Gadiel. "For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy." Blog : http://ournewhaven.blogspot.com/ (Modified Newhaven - Homestead Homes) Status : DA - Dec 09. Slabbed - Jan 10. Handover - Aug 10 Re: STAMP DUTY TO BE ABOLISHED???????? 4Jun 25, 2009 3:36 pm I think the new article on realestate.com.au is suggesting that stamp duty will be abolished for every purchase, regardless of whether the property is new, or under $600K or not. . . but it seems to be just reports and recommendations at the moment. Bugger. . . we bought our land 6 months ago and wasted $11K on the stamp duty! At least we don't have to pay it on the construction loan! |