Reduction in First Home Benefits on Stamp Duty

The NSW State Government announced its budget for 2011 to 2012 yesterday. An overview of the budget may be viewed here. One of the changes being introduced to the budget is a change in benefits for first home buyers under the First Home Plus Scheme.

Under the First Home Plus Scheme, first home buyers currently pay no stamp duty on properties under $500,000 and receive a discount for properties valued up to $600,000.

From 1 January 2012, the stamp duty savings will apply only to new homes, including new homes purchased “off the plan”. First home buyers of established homes will have to pay full stamp duty from that date.

If you are a first home buyer and you are looking to purchase established property, you should consider purchasing the property before the deadline comes into effect.