Policy in detail

Published 2nd June, 2017

The NSW Government has released a comprehensive package designed to make it easier for people to own their own home, particularly those buying their first property.

  1. For both new and existing dwellings, first home buyers will be exempt from stamp duty for properties up to $650,000, with a discount up to $800,000, from 1 July 2017.
  2. The 9 per cent insurance duty on lenders mortgage insurance will be abolished from 1 July 2017.
  3. The foreign investor surcharge will be increased from 4 per cent to 8 per cent on stamp duty and from 0.75 per cent to 2 per cent on land tax, with foreign developers to be exempt, from 1 July 2017.
  4. A $10,000 First Home Owners Grant will be available to builders of new properties worth up to $750,000 and purchasers of new properties worth up to $600,000; and the $5,000 New Home Grant Scheme will close, from 1 July 2017.
  5. The 12 month off-the-plan transfer duty concession for all residential purchases by investors will be abolished from 1 July 2017.
  6. The Greater Sydney Commission (GSC) will ensure the final District Plans contain housing supply targets for each local government area for periods of five and 10 years, sufficient to cater for expected population growth and address housing undersupply.
  7. The Local Environment Plans (LEPs) of 10 priority councils in Greater Sydney will be updated to reflect the final District Plans within two years of the GSC finalising the plans.
  8. The LEPs of all other councils in Greater Sydney will be updated with appropriate housing targets within three years of the release of final District Plans, with powers for the Minister to intervene if necessary to ensure LEPs are updated.
  9. Up to $2.5 million will be available to each priority council to assist them to update their LEP, with payments also available to up to five other councils that volunteer to accelerate updating their LEPs.
  10. A new Planning Circular and Guidelines for preparing Local Housing Strategies will assist councils protect the character of important local areas while supporting housing supply.
  11. Around 30,000 additional dwellings in existing Priority Precincts or new partial precincts will be delivered through accelerated rezoning.
  12. Greater use of independent panels in local Development Applications (DAs) (other than smaller DAs delegated to council staff) in some local government areas.
  13. To ensure clear roles and accountabilities, GSC District Commissioners will no longer act as members of Sydney Planning Panels.
  14. The Department of Planning and Environment will establish a specialist team to work with councils to accelerate rezoning applications and create an Office of Housing Coordinator to resolve impediments to housing supply.
  15. Councils will be able to consider smaller minimum lot sizes when updating their LEPs in line with District Plans.
  16. A Medium Density Housing Code will allow well-designed dual occupancies, town houses, manor homes and terraces as complying development.
  17. A Greenfield Housing Code will simplify development standards for one and two storey dwellings built in greenfield areas.
  18. The Minister for Planning will issue guidelines to facilitate smarter and compact apartments in well-designed buildings that complement their neighbourhood, with car parking not linked to apartment titles.
  19. A new Statement of Priorities will be issued requiring Landcom to take an active role to support housing affordability.
  20. Property NSW will lead the identification of underutilised or surplus land across all government entities to contribute to increasing housing supply and the provision of social infrastructure.
  21. $2.145 billion will be allocated for state infrastructure to accelerate housing in priority areas.
  22. Changes to developer contributions for infrastructure will be implemented, including phasing out the Local Infrastructure Growth Scheme (LIGS), and introducing Special Infrastructure Contributions to new areas. $369 million will be allocated to councils for local infrastructure under the phase out of the LIGS.
  23. IPART will continue to determine efficient costs for essential works that are funded through local contribution schemes where the per dwelling contribution exceeds $30,000 for greenfield areas or $20,000 for urban renewal/infill areas, requiring a council to only adopt a contribution plan if it is consistent with IPART’s recommendation.
  24. A 50 per cent discount on interest costs will be available for councils on up to $500 million of commercial or additional T-Corp loans provided under the ‘Fit for Future’ loan scheme for councils.
  25. A new Premier’s Priority on housing affordability will be established with a goal of 61,000 dwelling completions state-wide on average per financial year to 2020-21.
  26. The Minister for Planning will lead a Housing Affordability Taskforce established to drive implementation of this strategy.
Published 2nd June, 2017