The new financial year is upon us which as always means a whole lot of changes. From tax changes to superannuation here is how Australia will be different from July 1, 2017, in the property world.
There are many changes coming into effect for First Home Buyers from July 1. Each state has unique changes to grant schemes and stamp duty reductions.
In Queensland, they have cut Stamp Duty out completely on first home buyer purchases of $600,000 or less and reduced the Stamp Duty Costs for homes priced at $750,000. Buyers who purchase off-the-plan will only be entitled to concessions on contracts that are entered into from July 1, 2017. Like the majority of the states, the vacancy tax will be in place, which taxes foreign buyers who leave their investment properties vacant for longer than 6 months.
In Victoria, the Victorian Government are focusing on regional Victoria rather than Metropolitan Victoria. First Home Buyers who purchase in metropolitan Victoria can get a $10,000 first home buyers grant, however, if buyers purchase in regional Victoria this grant doubles to $20,000. The Victorian Government has removed stamp duty costs for homes up to $600,000 and reduced the stamp duty for homes priced up to $750,000. Home buyers who are interested in off-the-plan investments will only have access to concessions when contracts are entered into from July 1, 2017. Similarly, in NSW, stamp duty will be abolished for first home buyers of new and established properties up to $650,000, while discounts will be applied on properties up to $800,000.
Western Australia is one of the only states to have their first home buyers grant cut, with the grant going from $15,000 to $10,000. However first buyers who purchase either a new home or an established home will not have to pay stamp duty on homes valued up to $430,000 or for vacant land valued up to $300,000
In the Northern Territory, like most states, Stamp Duty has been removed on purchases of homes. In the NT, first home buyers will have stamp duty abolished on homes with a value up to $500,000.
Tasmania has extended the current first home buyers grant of $20,000 for one year from July 1, 2017, through until June 30, 2018.
In the ACT there is now a land tax on vacant properties which will come into effect from July 2018. While in South Australia investors will be eligible to pay no land tax for 5 years if they buy eligible off-the-plan apartments.
All in all, July 1, 2017, should be a positive for those first home buyers wanting to crack into the property market and it also should provide Australians with some relief knowing that foreign investors will have to pay more tax for their investment properties.