Stamp duty is a tax that everyone buying assets, such as real estate, is required to pay. When you are planning on a new build, each state of territory sets their own level of stamp duty which often makes it difficult to understand exactly what costs you will incur. What makes it even more complicated is the varied concessions relevant for each state. However, if you are a First Home Buyer it is important to understand these concessions as they could save you thousands on your new build.
Our mission at iBuildNew is to help create transparency in the building industry, by providing independent advice to individuals building a new home. That is why we have broken down the stamp duty scheme, making it easy to see if you are eligible for any concessions. These typically focus on First Home Buyers, but there are concessions for pensioners and other schemes set up by each state to assist you in getting into your own home sooner. For more information follow the relevant links to your state website.
Stamp duty concessions for your new build
Victoria:
Probably the most notable at the moment is the Victorian State Government stamp duty concessions for First Home Buyers. Coming into action in July 2017, the scheme focuses on properties under $750,000 that are purchased by First Home Buyers. The government hopes that the average saving of $8,000 will provide an incentive for First Home Buyers to enter the property market, and are not pushed out of the market by Investors.
If you are planning on a new build project in Victoria, now is the perfect time to start planning. The scheme works by completely abolishing stamp duty for properties under $600,000 and applying a phased concession for houses priced between $600,000- 750,000.
Other concessions apply for Pensioners who will receive a concession from stamp duty on properties under $300,000 including part ownership, and a phased concession for properties between $300,000- 750,000.
Good news for Victorian First Home Buyers, those looking to buy or build a new house in Regional Victoria after July 1, 2017, will be entitled to $20,000 under the First Home Owners Grant. This $10,000 increase aims to attract young buyers towards regional cities.
For more information, head over to vic.gov.au
New South Wales:
If you are thinking of starting your new build project in New South Wales, the State Government is making this process cheaper for you. First Home Buyers are also the focus for this Stamp Duty scheme, working in a similar fashion to the Victorian State Government. There will be no stamp duty for First Home Buyers purchasing land under $350,000 or houses under $550,000 and a phased concessions system applies for land between $350,000- $450,000 or houses between $550,000- $650,000.
For more information head, over to the NSW Office of State Revenue.
Western Australia:
With the announcement that Western Australia would be boosting its First Home Owners Grant for a 12-month period beginning January 1 2017, building a home has never looked more attainable. The grant will increase from $10,000 to $15,000 for homes under $750,000. Additionally, those who are eligible for the First Home Owners Grant can additionally access a concession on Stamp Duty on homes under $430,000 or land under $300,000 and a phased concession on homes between $430,000- $530,000 and land between $300,000- $400,000.
For more information, head over to housing.wa.gov.au
Queensland:
Building a new home in Queensland is definitely the best option if you are wanting to enter the property market. Currently, Queenslanders who are building their first home or who are purchasing a new property under $750,000 are able to access both a $15,000 First Home Owner Grant as well as a Stamp Duty concession. If you are want to know exactly how much you can save on Stamp Duty, you can use this calculator.
South Australia:
Unfortunately, First Home Buyers in South Australia are not able to access any Stamp Duty concessions. If you are planning to build in South Australia, to save you in the long run with a mortgage that works for you, comparing your options at uno Home Loans would be worthwhile. uno Home Loans help you compare many different mortgage providers, finding the best options for you.
Wherever you are building it is always best to have all the information before you make a decision. At iBuildNew we can connect you with builders who will be able to meet your specific requirements. Compare house designs and land on our site, or call one of our expert phone consultants on 1800 184 284.
Let us do the legwork for you.
- We’ll ask the right questions to better understand your needs
- We’ll create a recommended shortlist ideally matched to you
- We’ll answer specific questions or concerns related to home building, land purchasing or financing
Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
1800 184 284
