Australian state of NSW changes to the stamp duty for first-time house buyers
The New South Wales Government has modified the limits for the exemption from payment of stamp duty for new or existing residences as well as the amount of time that buyers must reside in the property as of 1 July 2023. Also closing is the First Home Buyers Choice Scheme.
First-Time Home Buyer Program
First-time buyers who acquire a new or used house for $800,000 or less are free from paying stamp duty under the First house Buyer Assistance Scheme (FHBAS). This is now $750,000, up from $650,000. Additionally, there are discounts that apply for stamp duty payments between $800,000 and $1,000,000; after that, standard stamp duty rates are in effect. Previously, it was between $650,00 and $800,000.
The thresholds for vacant land’s stamp duty will not change. When purchasing vacant land for $350,000 or less, eligible first-time buyers are exempt from paying stamp duty. Additionally, there are discounts for paying stamp duty up to $450,000; after that, regular stamp duty rates are in effect.
The other modification to the FHBAS is the need that the buyer move into the property within 12 months of the date of settlement of the acquisition and live in the property for a continuous period of 12 months, effective for contracts exchanged on or after 1 July 2023. This used to be a continuous six-month span.
First-Time Home Buyers’ Option
The First Home Buyers Choice Scheme, which allowed you to choose to pay an annual property tax payment in place of stamp duty, will end on July 1, 2023. For as long as they own the property, those who chose to participate in the program before July 1, 2023, will continue to pay the property tax.
Contact our office if you have any queries about the aforementioned or if we can help you buy your first house or a piece of land.