The NSW government has failed to provide meaningful incentives for first homebuyers, despite announcing higher charges for foreign investors that will deliver a $1 billion windfall, says the Real Estate Institute of New South Wales.



Last week, NSW treasurer Gladys Berejiklian said the government will add a 4% stamp duty surcharge on residential property bought by foreign purchasers from 21 June 2016, and will add a 0.75% land tax surcharge for foreign owners beginning in the 2017 land tax year.

REINSW president John Cunningham said it appears the NSW government has neglected the affordability problems for first-home buyers and has failed to deliver meaningful incentives.

“The government appears to have no intention of passing any of this funding to first homebuyers and have taken the view that they are a lost cause. Is that what they are thinking, have they written them off? It certainly appears so,” Cunningham said.
 

Under the changes, foreign investors will no longer be entitled to the 12-month deferral for the payment of stamp duty for off-the-plan purchases of residential property, and will not receive the tax-free threshold for the land tax surcharge.

“Having taken away the 12-month deferral to pay stamp duty from foreign investors, the government has the opportunity to provide this to first homebuyers as one option for some concession,” said Cunningham.

“In tomorrow's budget the NSW government can make a direct difference to first-home buyers who have been left in the dark for too long. We urge NSW treasurer Gladys Berejiklian to use the foreign investment windfall for the direct benefit of those trying to enter the property market,” Cunningham said.

See also:

Angry responses to new foreign investor taxes

NSW joins Vic, Qld with foreign investor buyer tax increase