New Stamp Duty Amendment a Positive for Homebuyers

The recent amendment to Papua New Guinea’s stamp duty law, increasing the exemption threshold from K500,000 to K700,000, offers several benefits for first-time homebuyers:

1. Reduced Upfront Costs 

Properties valued up to K700,000 are now exempt from stamp duty, leading to significant savings for buyers. For instance, under the previous threshold, a property priced at K600,000 would incur a stamp duty of approximately K18,000 (calculated at 3% for amounts between K36,000 and K70,000, and 4% for amounts between K70,000 and K140,000) . With the new threshold, this cost is eliminated, making homeownership more affordable.

2. Expanded Property Options

The higher exemption threshold allows first-time buyers to consider a broader range of properties, including those in more desirable locations or with better amenities, without the added financial burden of stamp duty.

3. Enhanced Affordability

By alleviating the stamp duty expense, the amendment reduces the overall financial strain on first-time homebuyers, making it easier for them to enter the property market.

4. Support for Government Housing Initiatives

This change aligns with the government’s efforts to improve housing accessibility, complementing programs like the First Home Ownership Scheme (FHOS), which offers favorable loan terms to eligible citizens .

Overall, the increased stamp duty exemption threshold is a positive step towards making homeownership more attainable for Papua New Guineans.