Masterclass

The NSW Budget and You

Published on June 21, 2017 4:35 am, by

The NSW budget was announced on Monday night. There are winners and losers, and we’ve put together a roundup of the things that may directly affect you:

Housing – First Home Buyers

If you are purchasing your first home, and spend less than $650,000 you will not be required to pay stamp duty on your purchase or on your Lenders Mortgage Insurance (LMI) if you need LMI.

First home buyers spending between $650,000 and $800,000 will have stamp duty discounted, however, will not be exempt.

The median house price in Sydney was reported at $1.15 million in April, and 78 suburbs cleared the $2 million median. This makes it clear that first home buyers within Sydney wishing to take advantage of not paying stamp duty will need to pick their spots carefully.

We can only assume that apartments are included in this measure, and potentially you will be able to find an apartment under $650,000 in some Sydney suburbs.

First home buyers in the rest of NSW may benefit more in areas with lower housing prices.

This takes effect on July 1, 2017.

Housing – Investors

If you are buying off the plan you will be required to pay your Stamp Duty up front, rather than paying on the settlement date.

Housing – Foreign Investors 

The Stamp Duty surcharge for Foreign investors will increase from 4% to 8% while Land Duty Tax will have a 2% surcharge added to it.

Families with kids who play sport

You will be entitled to $100 per child as an “Active Kid’s Rebate” which must contribute to kid’s sporting activities.

This rebate will be available for the 2018 school year, although it’s not clear yet how it will be applied for or administered. We do know that the payment will not be means tested.

Farmers

Taxes on crop and livestock insurance will be abolished from the start of next year.

Small business

The duties on professional indemnity insurance, product and public liability insurance and commercial vehicle insurance, including aircrafts, will no longer be charged from the start of 2018 for small businesses.

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Jen is an experienced banking professional who loves wine, coffee, finding a bargain and of course her three beautiful children. Since Jen's first budget led her to buy a home at 20, Jen has passionately helped others to make better decisions with their money.

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