Stamp duty is a tax levied in Australia on all major transactions such as purchase of new home, transference of ownership of property. Stamp duty is paid by the debtor to a lender when he acquires a loan from the lender for the purchase of property such as houses and lands.

Stamp duty can have a major impact on the total expenditure you make while purchasing a home or land, it is advised to calculate the stamp duty before making the final payment. The stamp duty in Australia varies from 1.25 -% to 6.75.

%Stamp duty levied on your transaction can be calculated through stamp duty calculators. Stamp duty calculators provide individuals to easily calculate the stamp duty on their transaction. To use a stamp duty calculator, you need large amount of information. This information is very important if you want to calculate the accurate amount of stamp duty levied on your transaction.  The information required to calculate stamp duty through stamp duty calculator is as follows:

First you should know the area you are living in, stamp duty in Australia varies from city to city. Stamp duty charged in Manchester is different from the stamp duty charged in Sydney. Secondly, to calculate the stamp duty you need to know the value of your property. The charge of stamp duty changes with changes in the price of property. Stamp duty levied on properties that have a high value is higher than the properties that have a lower value.

Thirdly, to calculate stamp duty you have to know the purpose of the purchase of property. The purposes are divided into two categories: residential and commercial. Stamp duty charged on commercial properties is higher than the stamp duty charged on residential. The amount of loan you have taken for your property or home even affects the stamp duty charged on your transaction.

Knowing all this information does not only help you calculate the accurate stamp duty of your transaction, it even helps you calculate the discounts you can obtain on stamp duty. If you fall under the category of First Home Owner, no stamp duty is levied on your transaction if the property is priced from $1 to $500,000 and a discounted amount of stamp duty is charged if your transaction is of more than $500,000

All the above stated information will help an individual calculate the stamp duty he is liable to pay. The stamp duty calculator even shows the amount of transfer fee, mortgage registration fee, and stamp duty on loan and property an individual is liable to pay.

Queensland Stamp duty is essentially a taxes within the copy associated with property or home, payable on the Qld Government by customer on the property or home. This Queensland Federal provides publicized the premiums associated with stamp duty (sometimes known copy duty) payable will certainly change from you August 2011. Significantly, the home Concession, set out below, will certainly no longer be readily available for property potential buyers who have owned property or home just before.

Our own detailed stamp duty calculator (utilized above) will allow potential buyers in order to estimate the amount of copy duty they will be forced to pay out (both just before and following your adjustments upon you August 2011). The following may be a beneficial comparison tool to get potential buyers currently available in the market who wish for making an informed selection regarding moment his or her pay for.

Stamp Duty Queensland (Qld) is definitely payable upon land orders having developments; which usually is generally a house, and is payable by customer. The examples below variety display this Stamp Duty Premiums Qld. This Stamp Duty Calculator Qld below is definitely an easy way in order to estimate this stamp duty owing around Queensland. Easy methods to Estimate this Stamp Duty QLD.

Simply get into this cost on the property or home (Property or home Benefit) the exact property type; whether you might be surviving in the exact property, and so it can be classed as non-commercial or perhaps definitely not, subsequently pick out whether you might be an initial Property Customer around Queensland.

There are a number associated with credits available to purchasers associated with property or home around Queensland, and they’re built into this calculator. As you will notice on the stand below, this calculation associated with simply just the premiums is really a very little elaborate, and so using the Stamp Duty Calculator Queensland is definitely highly recommended around calculating this Stamp Duty Queensland volume.

After you understand how a lot you’ll be paying out around Stamp Duty QLD, after backing up put the following volume on the Mortgage Calculator to get a considerably more specific ideal just what exactly your home loan payments will be.Your dog stamp duty legal responsibility upon a SMSF’s restrained recourse applying for. By means of all these prerequisites, every time a superfund trustee acquisitions an acquirable property making use of borrowed funds there will be couple of Geneva airport transfers that will bring in stamp duty.

Stamp Duty is really a tax of which familiar with sign up for most acquisitions associated with property or home or perhaps gives you. On the other hand after you acquire property or home you are now usually pay out Stamp Duty Land Taxes (SDLT). After you acquire gives you an individual normally pay out Stamp Duty Arrange Taxes, until it is a pieces of paper purchase in which case you pay out Stamp duty is really a taxes that may be levied upon documents.

In times past, the following integrated virtually all suitable documents for instance cheques , bills, military fees, spousal relationship permit and land orders. A natural stamp (a revenue stamp ) had to be mounted on or perhaps fascinated on this record in order to signify of which stamp duty had been given prior to record has been legally efficient. Modern-day variants on the taxes no longer need an actual stamp.

Stamp Duty has been payable upon land and property or home orders above some benefit way up till December 2003. After 1 December 2003 it had been exchanged having Stamp Duty Land Taxes. You could find out and about just how much Stamp Duty Land Taxes you must pay out inside guide Taxes upon shopping for property or home.

Stamp Duty remains payable in case you are buying a property or home the place that the long term contract has been utilized just before ten July the year 2003 plus the copy documents haven’t much but happen to be ‘stamped’. Whenever the following relates to an individual, you could find out and about more, which include getting documents rubber stamped plus the period boundaries to get paying out Stamp Duty, inside HM Revenue & Customs (HMRC) guide below.

After you acquire gives you an individual pay out Stamp Duty whenever it is a piece of paper purchase or perhaps Stamp Duty Arrange Taxes whenever it can be an electronic, paperless purchase. In case you acquire gives you by using a commodity copy type the item counts for pieces of paper purchase and Stamp Duty is definitely payable. Note that you merely pay out Stamp Duty whenever gives you are usually moved – you don’t need to pay out the item whenever gives you are usually initial given.

The federal government of Australia report does not levy stamps accountability. Even so, stamps responsibilities are accessed from the Aussie say on a variety of equipments (published paperwork) as well as transactions. The prices with stamps accountability vary from say to mention, since perform the characteristics from the equipments and also transactions susceptible to accountability. A number of jurisdictions not need an actual physical document to be able to appeal to what is at this point frequently referred to as transaction duty.

The Real Estate Institute of Australia has report possesses nowadays labeled on the authorities to be able to abolish stamps accountability on almost all Aussie property transactions. Engaging on the national Duty Forum, REIA key accounting Amanda Lynch said the existing amount of stamps accountability have had the influence with generating housing expensive to be able to most first residence customers as well as property option traders.

Stamps accountability prices around the world are very high, starting from several 4% to 6 % with the price tag on the normal residence, offered the high property prices all around as well as the high price with home loans; this is taking property outside of the affordability levels of average Australians.

FIRST home buyers on the Tweed are not rushing to buy homes after the NSW Government announced the end of stamp duty exemption despite promising signs elsewhere in the state. For properties under $500,000, first home buyers in NSW currently are exempted from paying stamp duty but as of next year only new homes will attract the concessions.

A loan brokerage firm has reported a 90% increase in online enquiries from first home buyers after the NSW Government announced the decision to scrap the stamp duty exemption. Aussie founder and executive chairman John Symond said the government decision to end the exemption at the end of the year had accelerated the buying process for many first home buyers.

“This decision has spurred many first home buyers into action and will bring forward many buyers who may have been waiting to see what happens with the economy,” he said. “While we may see a few months of action in this sector, it’s likely to cause property sales in this sub $500,000 range next year to slow down.”

Homeloans Tweed Heads principal Neil McLean said he had not noticed a surge in numbers of first homebuyers. “None at all. It hasn’t given even a ripple let alone a surge,” Mr McLean said. “It’s disappointing particularly in the market where there would be properties available in their price bracket.” RAMS Tweed Heads principal John Lunney said he could not say for certain if the end of the stamp duty exemption was having an effect on numbers of first home buyers.

“We’ve had a fair bit of enquiry coming through but not sure if it’s because of that,” Mr Lunney said. “It might be coming more off the advertising.” North Real Estate Agents director Lance Cotterill said he was expecting to see some movement soon. “I haven’t seen any movement yet but, frankly, if I was them I would.

“It’s free money and once it’s gone, it’s gone. It’s not likely to come back in a hurry,” Mr Cotterill said. “It’s a good time for them to buy at the moment and the saving of stamp duty is a big saving because it is a lump when you buy.” HIA executive director for Gold Coast and Northern Rivers Colin Buttenshaw said there had been some activity reported from real estate companies.

“It hasn’t translated to new homes even though we believe that expanding that benefit to people aged under 55 is a step in the right direction,” he said. “NSW has been consistently under building so the government is on the right track.” Mr Buttenshaw said the announcement came at a time when NSW building commencements were down 20% in June. “We’ve got some great developments coming on board in northern rivers but what has been fairly steady is renovations.

“It’s only been down 2% (that means people want) to stay at home and put in additional rooms,” he said. “That’s a good sign.”

Source:http://www.ballinaadvocate.com.au/story/2011/09/15/end-stamp-duty-exemption-govt/

In addition to stamp duty concessions, new home builders may also find additional savings through the Home Builders Bonus. This is intended to encourage new home construction and provide concessions for the new home purchases, homes off the plan and a vacant lot. There are also specific concessions for seniors purchasing a new home and it will vary by state.

New South Wales

Depending on the property value, first home buyers building a new home may see greater savings by claiming stamp duty savings with the Home Builders Bonus (see below). However, you can only choose a first homebuyer exemptions or Home Builders Bonus, not both. It is important to review both options and determine which one gives the maximum stamp duty savings.

Home Builders Bonus

This is available only for first home buyers building a new home and home builders (including investors and existing home owners). It can be applied to more than one property. If you’re building a new home, you could incur a stamp duty savings up to $22,490.This is for investors or seniors (55 and older) who are building a home. If you either purchase land worth up to $400,000 or buy an off the plan property in the pre-construction stage, you could be eligible for full stamp duty exemption of $22,490 if the property has a value of $600,000 or less.

If the home has been partially completed or the home is being purchased off the plan property with construction in progress, you could incur stamp duty savings of 25 percent off the normal rate.

Victoria – Do I include this material since the date has expired?

First Home Buyers can receive a First Home Bonus when either purchasing or building property that doesn’t’ exceed $600,000 in value.

Home Builders Bonus

This is available for first home buyers who may receive $13,000 for sale contracts until 30 June 2011 for new construction homes on the metropolitan areas. If a first home buyer purchases new construction in a regional area, they may be eligible for a $19,500 bonus. Applicants must meet certain criteria under the first home buyers grant.

Queensland

First home buyers in metropolitan Queensland can receive stamp duty savings and an additional $7,000 from a First Home Owners Grant. First home buyers in the regional area may also be eligible for an additional $4,000 in a Queensland regional bonus. Beginning 1 August 2011, there is a new Queensland Building boost for $10,000. This is available to anyone building a new home under $600,000 before 2012 January. With this boost, first home buyers could see a savings of $17,000.

New South Wales

Victoria

Queensland

South Australia

Western Australia

Tasmania

Australian Capital Territory

Australian Property Monitors senior economist Dr Andrew Wilson said the stamp duty revelations and 10 months of stable interest rate policy as well as the beginning of spring had given Sydney its highest auction clearance rate in two months. “With their concessions ending, those first home buyers looking for established units or houses may feel like now is the time,” Dr Wilson said.

Dr Wilson said prices would rise at the affordable end of the market if first home buyers did rush into the market. Listings are also on the rise with a bumper weekend at the end of September and sellers buoyed with new confidence as buyers emerge. “We do have reasonably high levels of stock at the moment,” Dr Wilson said.

“Buyers have been sitting on the sidelines over winter and it has been a quiet market over the year. Sellers have waited for a bit more competition for their properties. “Real Estate Institute of NSW president Wayne Stewart said agents were expecting a new generation of property hunters who are keen to escape being slogged an extra $17,990 in stamp duty.

“We feel there is going to be a lot of first home buyers getting out there,” he said. “We have a positive and a stable 12 months ahead. We will see a rush on properties in the lower quartile, prices will inflate and we’ll see a hangover period after that. “Ray White Concord principal Joel Hollis said he had seen a boost in inquiries for homes priced between $300,000 and $500,000.

“The stamp duty will be a hit of $15,000 – that’s a lot of money for anyone these days,” he said. “People who haven’t bought or can’t buy by this time have no choice to go back on the rental market. People that don’t buy before January will see rent increase. “Richard Matthews Real Estate director Matthew Everingham said strong sales results in Sydney had convinced vendors the market would hold its ground. “I think there is also now an element of sellers thinking about the effect the reduced stamp duty rates may have early next year,” he said.

Source: http://www.dailytelegraph.com.au/news/sydney-nsw/nsw-stamp-duty-date-causes-a-stampede-in-auction-clearance-rates-1405-million-worth-of-properties-moved/story-e6freuzi-1226134220605

Vigora

Eager buyers have camped out for days at the new Oran Park in Sydney’s southwest, where lots go on sale today.With the stamp duty exemption on existing homes ending on January 1, many first-time buyers are turning to new property to avoid the state tax.Findinvestmentproperty.com.au director Mark Mendel said “there are affordable new developments becoming available on a regular basis”.

Within just 10km of Sydney’s CBD, off-the-plan flats under $500,000 are going in hotspots such as Marrickville, Newtown, Zetland and Rosebery. “When you start to look at the 10km radius from Parramatta CBD, opportunities to buy new apartments become even greater,” Mr Mendel declared. There are two-bedroom units with parking in Merrylands, North Parramatta, Harris Park, North Strathfield and Silverwater under $500,000 – and under $400,000 in Quakers Hill, Greystanes, Campbelltown and St Marys.

Australand is also releasing apartments for less than $350,000 at Clemton Park Village – almost half the median Sydney house price of $675,000. “We understand that many young people are effectively being pushed out of the suburbs in which they grew up and the inner west is just one such example.” Australand NSW residential general manager Nigel Edgar said. There are also four-bedroom house-land packages in northern and southwestern suburbs such as Penrith, Mount Annan and Edmonson Park.

Source:http://www.dailytelegraph.com.au/news/sydney-nsw/panic-to-avoid-stamp-duty-tax/story-e6freuzi-1226144962772

Treasury boss Martin Parkinson has backed a move to wind back or abolish real estate stamp duties, saying they make it hard for workers to move west and north to take advantage of the mining boom. Asked at a Canberra forum which taxes were the biggest drag on productivity, he nominated state taxes on housing which, he said, inhibited economic adjustments, ”whether they be individual workers moving from the Illawarra to Queensland or Western Australia to work in the mining sector, or whether a firm is trying to restructure its business”.

”We need to encourage change, not to stand in its way. That’s why I make specific reference to state governments,” he told the conference. Victoria made $3.6 billion from real estate stamp duties in the year to June, about one-third the national total. Abolishing the tax could be paid for by lifting the goods and services tax from 10 per cent to 12.5 per cent.

The Henry tax review reported that ”ideally there is no place for stamp duty in a modern tax system”. It found property stamp duties discourage turnover and penalise improvements. ”The only positive feature of stamp duty – its relative simplicity – has long since ceased to justify its continued use in the face of the costs it imposes on Australian society,” the review said, recommending they be replaced by a broad land tax.

Professor Neil Warren, who reviewed state taxes for the NSW government, told The Age it was acknowledged among the states that stamp duties should go, but the transition was difficult. ”What about someone who has just bought a house. Does she have to also pay the replacement tax? If so, she is taxed twice. If the replacement tax is on land it should be the unimproved value so as not to reinstate one of the faults of stamp duties.”

Victorian Treasurer Kim Wells has budgeted to halve stamp duty for first homebuyers beginning with a cut of 20 per cent, which came into force in July. The first homebuyers rate will be cut again in January 2013, January 2014 and September 2014. Dr Parkinson told the conference he had little sympathy for business figures who said the industrial relations system was holding back the economy, telling the forum productivity had been sliding for a decade.

There was ”no magic pudding” that could help manufacturers suffering from the high dollar and cheap imports. There could be no return to protection and there could be no intervention to ”adjust” the exchange rate. Manufacturers had to reinvent themselves as they had throughout history.

The rise of China presented opportunities as well as threats for Australian businesses. ”By 2020 China could have a middle-class market that surpasses the United States in dollar terms. Australian industry has always faced continuous change. There is a certain distinction attached to premium goods that are ‘designed in Germany’ or ‘made in Japan’. It is my view the same cachet can and should be attached to those premium goods made or designed in Australia.”

Source:http://www.smh.com.au/money/push-to-dump-costly-stamp-duty-20110920-1kiml.html#ixzz1Yq9wNqbG

Developers have predicted changes to the stamp duty concession scheme unveiled in the NSW budget will ”distort” construction patterns by encouraging more home building on the city’s fringes. In its first budget, the coalition government announced that from January 1 stamp-duty exemptions for new home buyers will no longer apply for people who buy existing properties, saving the government more than $1 billion over four years.

In a move designed to stimulate construction of new homes, first home buyers will have stamp duty payments waived only on purchases of new and off-the-plan properties for less than $500,000, with partial exemptions available for new properties valued between $500,000 and $600,000.

The chief executive of developer lobby group Urban Taskforce, Aaron Gadiel, said: ”The thresholds will distort Sydney’s housing supply.”While he welcomed the changes as ”a sensible rebalancing of the stamp duty regime”, he said the $500,000 threshold was so low it would largely apply only to two-bedroom units in western Sydney, some smaller free-standing houses in Sydney’s south-west and studio apartments nearer the city centre.

Most new homes in the regions would also qualify. ”You are not going to get the concession for most of Sydney where apartments are built because it will very rarely be below $600,000 and it’s the same for houses in western Sydney, where not many will be below the cap,” Mr Gadiel said.

The government should have set the cap at $835,000, the current threshhold for the first home owners’ grant, so that families buying three-bedroom units might also have been eligible.”The government is making a billion dollars out of this change and it still would have made close to a billion if it had used the first-home owners’ grant threshold,” he said.

Stephen Albin, the chief executive of another developer lobby group, the NSW arm of the Urban Development Institute of Australia, welcomed the changes as ”good public policy” and agreed it would affect the type and location of new homes. ”We believe it will change buyers’ behaviour,” he said.

He downplayed the likely impact of the changes and said there were many other factors, especially a lack of land supply, that would determine where new home construction would take place. ”I don’t think it will be a massive boom in the fringes,” he said. He also wanted to see the threshold increased to further boost the extremely low rates of new home building in NSW.

Source: http://www.smh.com.au/nsw/stamp-duty-changes-will-distort-sydney-market-20110907-1jxwg.html#ixzz1YqAaqd9P

The state government’s bid to boost housing affordability by cutting stamp duty has failed to generate a new rush of first home buyers. The number of first-time buyers entering the market has fallen to its lowest level in seven years despite the 20 per cent discount becoming available about five months ago.

New figures also show the savings on offer – amounting to $5800 on a house at the median price of $565,000 – have been cancelled out by price rises in the city’s more affordable areas over the past year. The failure of the cuts to fuel buyer interest has been blamed on Melbourne’s long-running housing affordability crisis.

”First home buyers are being very cautious about the fact that the market is in a downturn right now,” said Louis Christopher, managing director of SQM Research. James Champion, who has been looking for a first home for more than two years, believes his best option is to wait and see. The 34-year-old IT manager considers the stamp duty cuts and first home grants to be ”fool’s gold” that can whip up buyer interest but actually make housing even more unaffordable.

”I think housing in Australia is just excessively overpriced at the moment. I’d probably start to have a fairly good think about it if [price falls] got to 15 or 20 per cent,” Mr Champion said. Slashingstamp duty for first home buyers is one of the cornerstones of the Baillieu government’s plans to improve housing affordability, with the cut set to increase from 20 per cent to 50 per cent by 2014.

The 20 per cent reduction applies to any first home purchased for up to $600,000 with a settlement date after July 1, which means buyers with a 90-day settlement term have been eligible for the cut since early April. But only 8519 Victorian first home buyers have taken out loans over the four months to July, a decline of 10 per cent on the same period last year. The last time buyer numbers were lower was in 2004.

A spokeswoman for Treasurer Kim Wells said the cuts had assisted more Victorians to buy their first home, with government figures showing 1428 buyers had collectively saved more than $3.96 million in stamp duty under the program so far. But first home buyers are also having to contend with the median house price soaring by nearly 52 per cent in the past five years, according to new figures from the Real Estate Institute of Victoria.

Despite the market dropping noticeably since the start of 2011, competition for more affordable properties has pushed Melbourne’s median house price up 4.6 per cent to $565,000 in the past 12 months. In response, industry groups have been lobbying the state and federal governments to provide first home buyers with a total exemption from stamp duty and to double the first home owner grant.

Source:http://www.theage.com.au/victoria/duty-cut-fails-to-help-first-home-buyers-20110910-1k39g.html#ixzz1YqCdP51E

The NSW Government’s changes to stamp duty exemptions will result in a wave of first homebuyer activity, it has been predicted. Loan Market COO Dean Rushton has forecast that the NSW Government’s move to limit stamp duty concessions to first homebuyers purchasing a newly-constructed home could see many buyers jumping into the market before the changes come into effect.

“This concession for first time buyers not paying stamp duty on established homes will cease from January 1, 2012, and it’s prompted a lot of people to assess their options now. That concession can be worth around $15,000, which is double the amount of the First Home Owners Grant. We are now seeing many people accelerating their plans to buy,” Rushton said.

Rushton claimed Loan Market had seen a 15% spike in first time buyer enquiries nationwide, with a 30% rise in enquiries in NSW alone. He predicted that this trend will not only continue, but intensify, as the new year approaches. “First home buyer activity will only rise in the coming months to beat this deadline,” he said.

Source: http://www.brokernews.com.au/news/breaking-news/stamp-duty-deadline-to-spur-fhb-rush/117642

First home buyers are eligible for a number of stamp duty savings and discounts depending on the type of home they are either purchasing or building.

Here’s a breakdown for New South Wales, Victoria and Queensland.

Stamp Duty New South Wales

First home buyers are eligible for a number of saving stamp duty savings worth up to $17,990 or $11,245 from the Home Builders Bonus (this will link to the next page) if a new home is built. A First Home Owners Grants will also add in $7,000 of savings.

If a first home buyer purchases vacant land is valued up to $300,000, they will pay zero stamp duty and save $8,900. This savings is reduced by $10.98 per value increases of $100 above $300,000 until it reaches $450,000. A stamp duty savings is cut off at this point.

Purchasing an existing home?

A first home buyer can receive a stamp duty exemption on an existing home priced up to $500,000. This is a $17,990 saving. With homes home valued up to $600,000, the savings drops by $22.49 for every additional $100 paid for the property. After the home reaches $600,000 and above, a stamp duty is gone.

Building your home?

A first home buyer building a home may see greater stamp duty savings with Home Builders Bonus (this will link to the other page). A home buyer can choose either the first homebuyer exemptions or the Home Builders Bonus but not both for additional savings. Remember, the Home Builders Bonus is only available for new home constructions though it can also be claimed by all home builders including investors and existing home owners.

Stamp Duty Victoria

Building a home valued up to $600,000?

In metropolitan Melbourne, first home buyers are eligible for a bonus payment worth $13,000 and $7,000 from a First Home Owners Grant.

In regional Victoria, first home buyers may also receive the $13,000 bonus and an extra $6,500 with the Regional Bonus scheme.

Stamp Duty Queensland

First home buyers can receive $8,750 in stamp duty savings on property valued $505,000. For every additional $100 on the property’s value, it will decrease by $17.50 until it reaches $550,000. First home buyers buying vacant land will not pay stamp duty on land valued up to $250,000 with the stamp duty concession reduced by $4.75 for every additional $100 paid for the land, capping out when the land reaches $400,000.

First home buyers in Queensland can also receive savings from the $7,000 First Home Owner Grant with regional first home buyers eligible for a $4,000 savings from the Queensland government’s regional bonus. The Queensland Home Concession for stamp duty payable ended on July 31, 2011 for non- first-time home buyers.

Additional copy may include:

Additional questions? Contact your local Office of State Revenue for additional details

NSW Office of State Revenue.

Victoria Office of State Revenue

Queensland Office of State Revenue

Stamp duty calculator (this will link to your calculator)

This also applied to first home buyers in Victoria but I thought the information should be excluded because on the July 1 date; however, but you could keep it in for people who fell into this timeline as reference. In May 2011, the Victorian state government proposed additional stamp duty exemptions for certain pensioners, concession card holders and Commonwealth senior’s health card holders. From 1 July 2011, these buyers will receive a full stamp duty exemption for properties valued up to $330,000 and partial exemption available for properties valued up to $750,000.

In addition, first home buyers can receive a 20 percent stamp duty concession for homes valued up to $600,000 with additional 10 percent stamp duty cuts available at 1 January 2013, January 2014 and 1 September 2014. This represents a total stamp duty discount for first homebuyers of 50 percent.

A push to drop stamp duties will not serve as the “silver bullet” to Australia’s lack of affordable housing, an industry group has claimed.

Treasury head Martin Parkinson has publicly supported a move to wind back or do away with state stamp duties, telling a forum in Canberra state housing taxes are the biggest impediment to productivity. Parkinson said the taxes inhibited economic adjustments, whether it be workers moving to take on new jobs or companies looking to restructure their businesses. However, lobby group Australians for Affordable Housing has claimed the removal of stamp duties is not the “whole answer” to housing affordability concerns.

“While it is not a popular tax with purchasers, cutting stamp duty alone is not the answer to the housing affordability crisis,” the group’s spokesperson Sarah Toohey said. The problem, Toohey suggested, is a tax structure which encourages property speculation.

“In isolation, cutting stamp duty won’t address the speculation that drives up house prices. Tax reforms are an important aspect of addressing the housing affordability crisis, but rather than quick fixes of kneejerk calls, we need to examine a range of measures that will work in conjunction to actually improve housing affordability,” she commented.

BUILDER Warren Harvey says the NSW Government’s decision to scrap stamp duty concessions on older homes for first home buyers has to be a good thing for the building industry. Newcomers to the property market will, from January 1, no longer be able to avoid paying transfer title charges on existing homes under $600,000. Stamp duty exemptions will now be restricted to newly built and “off the plan” properties.

Mr Harvey, who is the owner of Warren Harvey Homes, said the changes will definitely benefit builders in Bathurst and change the buying habits of those purchasing their first home. In particular, it will provide a boost for the sale of spec homes, he said,“I have two spec homes going all the time, sometimes three,” he said.“I think this new move will make it a bit easier to sell them.

“After all, if you have to choose between an older home and a brand new one, you will go for the new house every time, especially if they are a similar price.”On handing down the O’Farrell government’s first state budget, Treasurer Mike Baird said the measure would save $1.1 billion over four years. He said with new housing at historically weak levels, the government needs to target its home buyer assistance to where it is most needed in the economy.

Laurie Parkes, of FrontRunner Mortgage Group, said it will be very difficult for new home buyers to purchase a home after January 1. He said the stamp duty on a $250,000 home is $7250. While first home buyers get a $7000 grant, at least $4000 of that will go on solicitor’s fees, inspections and other costs. “The idea of no stamp duty on land and the purchase of a new property is a good one, but how much land is available in Bathurst and how many first home buyers can afford $350,000 plus for a block of land?” Mr Parkes asked. “It will definitely stimulate the building industry and that’s a good thing, because the benefit flows through the community. “But I think the price will drive many first home buyers right out of the market.”

CVS

BUILDER Warren Harvey says the NSW Government’s decision to scrap stamp duty concessions on older homes for first home buyers has to be a good thing for the building industry. Newcomers to the property market will, from January 1, no longer be able to avoid paying transfer title charges on existing homes under $600,000. Stamp duty exemptions will now be restricted to newly built and “off the plan” properties.

Mr Harvey, who is the owner of Warren Harvey Homes, said the changes will definitely benefit builders in Bathurst and change the buying habits of those purchasing their first home. In particular, it will provide a boost for the sale of spec homes, he said,“I have two spec homes going all the time, sometimes three,” he said.“I think this new move will make it a bit easier to sell them.

“After all, if you have to choose between an older home and a brand new one, you will go for the new house every time, especially if they are a similar price.”On handing down the O’Farrell government’s first state budget, Treasurer Mike Baird said the measure would save $1.1 billion over four years. He said with new housing at historically weak levels, the government needs to target its home buyer assistance to where it is most needed in the economy.

Laurie Parkes, of FrontRunner Mortgage Group, said it will be very difficult for new home buyers to purchase a home after January 1. He said the stamp duty on a $250,000 home is $7250. While first home buyers get a $7000 grant, at least $4000 of that will go on solicitor’s fees, inspections and other costs. “The idea of no stamp duty on land and the purchase of a new property is a good one, but how much land is available in Bathurst and how many first home buyers can afford $350,000 plus for a block of land?” Mr Parkes asked. “It will definitely stimulate the building industry and that’s a good thing, because the benefit flows through the community. “But I think the price will drive many first home buyers right out of the market.”

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