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Home buyers in the ACT who purchase off-the-plan properties to the value of $600,000 will have their stamp duty scrapped, as the government extends its scheme.
The move builds on the ACT government’s announcement last year to remove stamp duty for purchases up to the value of $500,000.
With house prices in Canberra up 25 per cent at February 2022 compared to the previous year, the government said the increased property value from $500,000-$600,000 will help ensure owner-occupiers at the “entry level” gain support.
The new duty-free threshold will take effect from 1 April 2022 and could save buyers up to $15,720 on their purchase, with the Chief Minister and Treasurer Andrew Barr signalling an annual extension.
Mr Barr said the government will continue to remove inefficient taxes on properties at the entry level of the housing market to make it easier for Canberrans to purchase their first home or downsize.
“These tax incentives are also designed to encourage an increased supply of new properties below the duty threshold,” Mr Barr said.
In addition, priorities such as “attracting build-to-rent” investments, partnering with the community housing sector on below-market rental projects and the delivery of its public housing growth and renewal program, were also earmarked.
Government-backed mortgage scheme
As escalating house prices drive more home buyers to seek out government incentives to enter the property market, the National Housing Finance and Investment Corporation (NHFIC) has recommended expanding the lender panel for government-backed mortgage schemes to improve the accessibility and reach of the schemes.
The NHFIC administers three schemes on behalf of the government: First Home Deposit Scheme (FHLDS), the New Home Guarantee, and the Family Home Guarantee, which are offered through a lender panel comprising two major lenders and 25 non-major lenders.
The refreshed non-major lender panel is intended to come into effect from 1 July.
In South Australia, more than 200 government-backed loans covering upfront property costs had been approved for the 2022 financial year so far, with demand ramping up.
The Starter Loan provides interest-free and repayment-free loans of up to $10,000 for five years to borrowers, to cover the upfront costs associated with buying or building a home, such as stamp duty, fees, and charges.
Meanwhile the NSW government had recently announced it was “considering a new approach” to reduce the deposit required for first home buyers, in exchange for a “share of equity”.
The move was slammed by the Real Estate Institute of NSW (REINSW) as poorly conceived, both in benefits and potential impact.
The program would see buyers purchasing their first property receive deposit assistance from the NSW government in return for equity in either their home, land or the property of a guarantor.
[Related: NHFIC seeks more lenders for home-ownership schemes]
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