NSW government announces stamp duty exemption for First home buyers

First home buyers of existing and new properties costing up to $650,000 will be exempt from paying stamp duty.

(AAP Image/Dan Himbrechts) NO ARCHIVING Source: AAP

NSW has announced stamp duty exemption for first home buyers struggling with housing affordability while simultaneously slugging foreign investors with higher taxes.

Premier Gladys Berejiklian on Thursday said the sweeping reforms were a "huge win for those aspiring to own their first home" in NSW.

She said the package was about giving first homebuyers a boost when bidding against investors.

"This is a huge win for people aspiring to own their first home in NSW," Ms Berejiklian told reporters in Sydney.

"This will provide a once-in-a-generation opportunity for first homebuyers to get their foot in the market."

NSW Premier Gladys Berejiklian Source: AAP

Under the new package, first home buyers who are purchasing existing properties worth up to $650,000 will be exempt from stamp duty from July 1st.

At present, the exemption is only available for those buying new homes.

There'll also be stamp duty discounts for first homebuyers purchasing properties worth up to $800,000, while stamp duty charged on mortgage lenders insurance will also be scrapped.

AFR reports these changes are expected to provide savings of up to $24,740 for first home buyers.

The Foreign Investor Surcharge Duty will be doubled from four per cent to eight per cent from July 1, while the annual land tax surcharge on foreign investors will rise from 0.75 per cent to two per cent a year.

Stamp duty concessions will be abolished for all investors purchasing off the plan to give first homebuyers a competitive advantage.

NSW will also commit to additional infrastructure spending "from government, councils and developers to accelerate the delivery of new housing," Ms Berejiklian said.

She vowed to make housing affordability one of her key priorities when she became premier in January.

NSW shadow treasurer Ryan Park on Thursday described the package as a reworked Labor policy that delivered too little, too late.

"They've missed the boat," he told AAP.

"They sat on their hands, there was nothing in last year's budget and, a year on, we're in crisis."

Mr Park said the plan to raise the Foreign Investor Surcharge Duty was lifted from an ALP proposal.  "(Therefore) I have no problems with that," he said. "We made it first."

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