Stamp Duty Update 2018: First home buyers and commercial investors read on
The recent ACT budget has seen some major changes that will, for the most part, positively affect buyers of residential property, particularly first home buyers. There is also good news for buyers of commercial property. Curious? Read on for a summary of the changes.
Residential Properties
- Lower stamp duty across the board
Buyers can now expect to pay lower stamp duty on purchases. As a guide, a buyer will save nearly $1,000 for a property with a purchase price of $650,000. This saving will only apply to
contracts exchanged on or after 6 June 2018. Any contracts exchanged before this date will be liable for stamp duty at the previous rate. - Stamp duty concession extended to include established properties for eligible first home buyers
Last year the NSW Government re-introduced the concession on stamp duty for existing properties and now the ACT Government is following suit. The stamp duty concession is currently only available for new properties, however, as from 1 July 2019 stamp duty will be waived for first home buyers on all purchases of new and existing properties. - First Home Owners Grant (FHOG) to be phased out
It is not all good news for first home buyers. The First Home Owners Grant (FHOG) will no longer apply to purchases that exchange after 1 July 2019. Any eligible buyer who exchanges before this date will still be eligible to receive the FHOG (regardless of when settlement is).If you have any questions regarding stamp duty and your purchase, and how these changes might affect you contact our experienced team at HKH today.
Commercial Properties
Commercial properties have also benefited under the ACT changes. Last year purchases of commercial properties under $1.5 million received a 50% reduction in the amount of stamp
duty payable, however from 6 June 2018 stamp duty on these commercial transactions have been phased out completely. That is, there is no stamp duty on commercial property as of 6 June 2018 for properties with a purchase price of less than $1.5 million.
If you have any questions regarding stamp duty and your purchase and how these changes might affect you contact our experienced team at HKH today.
