The NSW Government’s First Home Buyers Choice Bill was passed in the NSW Parliament on Thursday 10 November 2022 meaning that eligible first home buyers will now have the option to choose to pay an annual property tax rather than upfront stamp duty.
With stamp duty around 4.5% of a purchase price, this initiative will lower the up-front costs of home purchases and with the property prices reducing the last few months, help to boost the rate of home ownership in NSW.
Purchasers eligible need to be:
- individuals who are citizens or permanent residents, 18 years and over and are first home buyers
- not otherwise eligible for NSW Government stamp duty concessions
- have not (either themselves or their spouse) previously owned or co-owned residential property in Australia or previously received a first home buyer grant or stamp duty concessions
- the property being bought must be worth less than or equal to $1.5 million
- purchaser must move into the property within 12 months of purchase and live in it continuously for at least 6 months
- the contract of purchase must be signed after 11 November 2022
- if opted into the First home choice scheme an annual property tax based on the land value of the purchased property will be payable
For more information or to discuss how this would directly affect you, please do not hesitate to contact us.