NSW Government has announced new program to boost the housing market . Those who are over 65s and those buying homes off the plan will benefit from the country’s first zero per cent stamp duty, under the NSW Government’s latest budget showing the state back in the black two years earlier than expected.
Treasurer Eric Roozendaal has announced a surplus of $101 million for the 2009/10 financial year – a massive turnaround from the deficit expected a year ago – as the Government issued its final budget ahead of the 2011 state election. Surpluses are also forecast out to 2013-14, making the effects of the global financial crisis a minor blip in the state’s economic history. For 2010/11 a surplus of $773 million is expected, ahead of $885 million in 2011/12 and $863 million in 2012/13.
In the previous Budget, the NSW Government had expected deficits out to 2010/11, including a deficit of $990 million for 2009/10. Under the two-year plan, beginning July 1 this year, those purchasing properties off-the-plan will pay no stamp duty, a saving worth up to $22,490 each, Mr Roozendaal said.
The over-65s will also get a stamp duty exemption for the same period, to help them downsize to a new home. “This will apply to people over 65 who sell their primary place of residence and move to a newly-constructed home – whether it is house or an apartment,” Mr Roozendaal said.
A 25 per cent stamp duty cut will also apply to those buying a home worth up to $600,000 which is under construction or just completed. Mr Roozendaal said the measures were aimed at boosting housing supply and housing construction rates across the state. “A key driver of economic growth,” he said. Business is a big winner from the budget, with the already announced payroll tax cuts and the abolition of the insurance protection tax from July 2011.