The Northern Territory Government this week announced first home buyers will be able to receive up to a $10,000 exemption in their Stamp Duty costs when buying an established home to live in.
Called the First Home Owner Discount (FHOD), eligible Northern Territory first home buyers will receive a 50% discount on Stamp Duty charges up to a maximum discount of $10,000. The discount only applies to eligible purchases of established properties between 24 May 2016 and 30 June 2017, at which time the Government will review whether to extend the discount offer.
Unfortunately the discount will not apply to new home builds, however they will still be eligible for the First Home Owners Grant
The discount is for established housing
Will other States follow the Northern Territory?
Earlier this year FHBA called on Stamp Duty concessions of 100% discount on all new builds for first home buyers and a 50% discount on all established housing stamp duty charges for first home buyer (up to a relevant threshold).
FHBA co-founder Daniel Cohen applauded the Northern Territory government on their announcement at this week’s budget. “Many first home buyers can’t afford new build. Stamp Duty is one of the largest upfront costs associated with buying an established property for first home buyers. We congratulate the NT Government on their announcement and we encourage all other States to consider adopting a discount offer like this”.
Fellow FHBA co-founder Taj Singh added “We think this is more effective policy then giving out free Grants for only new builds”.
Could it get even better for first home buyers in the Northern Territory?
During the official reply to the Northern Territory Government budget, Opposition leader Michael Gunner offered a $24,000 stamp duty concession for first home buyers of existing houses worth up to $650,000. In addition, Mr Gunner said a Labor government would offer first home buyers vouchers of $10,000 to be spent locally, $2,000 of which could be spent on white goods and furniture. These incentives, if passed as legislation, would be higher then what the current Country Liberal Government announced this week.