NSW government announces changes to stamp duty threshold; boost for first homebuyers

First homebuyers who purchase a property worth up to $1million will save thousands on stamp duty costs under new NSW government scheme.

In changes announced today by NSW Treasurer Dominic Perrottet to stamp duty threshold, stamp duty will be waived for homes up to $800,000 and discounted up to $1 million from 1 August this year. The previous limit was $650,000.

"It's the great Australian dream to buy your first home and we want to get as many young families into the housing market as possible," Mr Perrottet said today.

He said the changes, as part of the state government's COVID-19 response plan, would also save first home buyers stamp duty of up to $31,335 on a new $800,000 home.

The NSW government has predicated up to 6000 homebuyers could benefit from the scheme.

It will also continue to offer a $10,000 First Home Owner Grant, which is available to people buying a new first home worth no more than $600,000, or buying land and building a new first home worth no more than $750,000 in total.

This means the maximum amount of benefit a homeowner could be entitled to is $32,335 if purchasing a new home and accessing the grant.

Under the changes the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000.