First-home buyers are now able to enter the property market in New South Wales sooner, with the legislation having been enacted on 11 November 2022.
The scheme, dubbed “First Home Buyer Choice” allows first home buyers to choose between an annual property tax or an upfront stamp duty payment.
Ultimately, this initiative will lower the up-front cost of home purchases and will reduce the amount of time needed to save sufficient cash for a deposit.
The annual property tax payments will be based on the land value of the purchased property. The property tax rates for 2022-23 and 2023-24 will be:
- $400 plus 0.3 per cent of land value for properties whose owners live in them
- $1,500 plus 1.1 per cent of land value for investment properties*.
*The policy is specifically designed to help first home buyers get into the property market. Therefore, if you bought the property as a first home buyer, opted for the property tax and then decided to use it as an investment property, the scheme changes.
Eligibility criteria and some conditions apply including, but not limited to.
- Property price up to $1.5 million
- you must be an Australian Citizen or Permanent Resident and
- you have to move into the house within the first year and live in it for at least six months.
The choice will be officially available from 16 January 2023, however refunds can be applied for if a first-home buyer purchases a property in New South Wales between 11 November 2022 and 15 January 2023.
Note: Existing exemptions/concessions on Stamp duty for first-home buyers will continue to apply for homes in NSW purchased for under $800,000, under the First Home Buyer Assistance Scheme.
Please contact our team if you would like to know more about the First Home Buyers Assistance Scheme here.