From 1 July 2010, for a period of two years, stamp duty will be eliminated for any purchasers buying a home worth up to 0,000, before construction starts.

In addition, a 25% stamp duty discount will apply to homes worth up to 0 000 already under construction or newly completed.

Stamp duty will also be eliminated for the next two years for over-65s who buy and move into a newly-built dwelling worth up to 0,000 provided that they sell their existing home.

“REINSW welcomes the initiatives on stamp duty announced in the Budget,” said REINSW President Wayne Stewart.

“REINSW has been calling on the NSW Government for some time to deliver incentives to reinvigorate the property sector.

“These initiatives will go some way to encouraging investors back into the market, however it is clear that much more needs to be done.

“NSW continues to be stuck in the grip of a rental crisis which is hurting renters across the State because not enough is being done to encourage investment in the private rental market.

“Further, the NSW Government continues to increase property taxes in the state with the new Ad Valorem fee to generate million per annum.

“Unfortunately, this is the same amount per year which media are saying will be delivered in savings by today’s announced changes to stamp duty.

“The reality is that more widespread reductions in stamp duty would encourage greater activity in the property market and generate more revenue for the State over the longer term,” said Mr Stewart.