12 June 2012
The NSW Treasurer, the Hon. Mike Baird, has today announced a range of changes to NSW taxes and grants as part of the 2012 State Budget.
However, REINSW believes that today’s Budget is a missed opportunity to protect the engine room of the national economy.
“REINSW is deeply disappointed that the Budget has failed to respond to the real challenges facing the market,” said REINSW President Christian Payne.
“The absence of stamp duty reform, the lack of incentives for purchasers and sellers of existing property, and the failure to kickstart the investment sector are real failings of today’s Budget.
“Given the growing storm clouds over the international economy and an already underperforming property sector, today’s Budget was the opportunity for the Government to take decisive steps to stimulate the market. Unfortunately, that did not occur.”
According to Christian, today’s Budget was a real chance for the State Government to show it was ready to act in concert with the Reserve Bank in stimulating the property sector and help protect the engine room of the national economy.
“It is not enough to leave the heavy lifting to the RBA, yet unfortunately that is what has happened today,” he said.
Following a detailed briefing from the Treasurer during the Budget lock-up this morning, REINSW is now in the process of thoroughly analysing the potential impact of the changes.
A summary of the changes is as follows:
New Home Grant Scheme
From 1 July 2012, a new $5,000 grant will be provided to buyers of new homes, whether off the plan or newly built, with a value up to $650,000 and to buyers of vacant land that is intended to be the site of a new home valued up to $450,000.
The grant is targeted at all non-first homebuyers and is available to investors as well as owner occupiers. The grant will be administered through the transfer duty payment process.
First Home Owner Grant (New Home) Scheme
From 1 October 2012, the First Home Owner Grant Scheme will be replaced by the First Home Owner Grant (New Home) Scheme. The new scheme will only apply to first homebuyers who purchase or build a new home valued at up to $650,000.
The grant will increase from $7,000 to $15,000 from 1 October 2012 to 31 December 2013 and to $10,000 from 1 January 2014.
First Home – New Home
From 1 July 2012:
- The transfer duty exemption cap on new homes increases to $550,000 with duty concessions for new homes valued between $550,000 and $650,000
- The transfer duty exemption cap on vacant land increases to $350,000 with duty concessions for vacant land valued between $350,000 and $450,000
Deferred abolition of duties
The abolition of marketable securities duty on unquoted marketable securities has been deferred until 1 July 2013.
The abolition of duty on mortgages has been deferred until 1 July 2013.
The abolition of transfer duty on non-land business assets has been deferred until 1 July 2013.
Source: NSW Office of State Revenue website