For first-home buyers stamp duty on new AND existing homes worth up to $650,000 will be abolished, and homes worth up to $800,000 will be granted stamp duty relief.
In addition, insurance duty on LMI will be removed, and a grant of $10,000 will be provided to builders of new homes worth up to $750,000 and purchases of new homes up to $600,000.
The reforms will also double the surcharge on stamp duty for foreign buyers to 8% and the surcharge on land tax will grow to 2% from 0.75%. But there will no increased surcharges for foreign developers.
First-home buyers have to constantly battle against foreign investors for properties. To address this issue, the 12-month deferral of duty for residential off-the-plan purchases by investors will be abolished.
Buyers of residential off-the-plan properties, whether first-time or not, can still avail of the 12-month deferral in stamp duty, postponing payment from 3 to 15 months following settlement. However, investors will not be entitled to this privilege.
These measures will become effective starting 1 July 2017.