NSW cuts stamp duty on new homes
The NSW State Government is cutting the stamp duty on newly-built homes by buyers who are not first-home buyers. It cuts stamp duty for second-home buyers and investors, reducing the tax 50% for properties under $600,000.
The NSW Housing Construction Acceleration Plan, announced in the State Budget, starts on 1 July and will save investors and home buyers up to $11,245 on properties worth less than $600,000. First-home buyers are already exempt from stamp duty on homes up to $500,000.
After 12 consecutive Budget surpluses, Treasurer Eric Roozendaal’s FY2010 Budget will be $1.3 billion in deficit and not return to surplus until FY2012.
The Government predicts a moderate economic recovery in NSW in 2010 but unemployment is forecast to rise from 6.4% now to 7.75% during FY2010 and 8.5% in FY2011. Much stronger growth of 4% is predicted for 2012.
The Budget forecasts $63 billion in spending on infrastructure over four years to support 160,000 jobs per year. The $24 billion on transport over four years includes the $2.7 billion CBD Metro. Spending commitments for FY2010 include $7.1 billion on transport, including $3.1 billion on new train carriages and buses, as well as $2.5 billion on roads (up 16%). Health spending includes upgrades to the Liverpool, Royal North Shore and Nepean hospitals.
