First Home Buyer Changes July 2023 NSW

First Home Buyer Changes 2023

New South Wales

News Release

• From 1 July 2023, First Home Buyers purchasing new or existing properties in New South Wales can expect the Transfer Duty Exemption (stamp duty exemption) for Properties up to $800,000 raised from $650,000.

• The concessional threshold (pro-rata) rate will apply for Properties between $800,000 to $1,000,000 (up from $650,000 – $800,000).

• First Home Buyers must reside in the acquired property for a continuous 12 month period (up from 6 months) commencing at any stage within 12 months of settlement.

The NSW Government has expanded the First Home Buyer Assistance Scheme.

From 1 July 2023, the transfer duty exemption threshold for new and existing home purchases by eligible first home buyers will increase from $650,000 to $800,000, and the concessional rate will increase from $800,000 to $1 million.

The First Home Buyer Choice (FHBC) (Annual Land tax Option) will end for all contracts exchanged from 1 July 2023.

Purchasers who exchange contracts on or before 30 June 2023 have up until settlement to opt-in to FHBC. From 1 July 2023 there will be no option to choose between property tax and transfer duty on new purchases.

Customers who have opted into FHBC will continue to pay property tax for as long as they own that property and will remain exempt from transfer duty on that purchase.

First homebuyers purchasing a home for $1 million or more on or after 1 July 2023 are ineligible for transfer duty exemptions or concessions and will be required to pay transfer duty.

Additionally, the residence requirement will change for the following:

• First Home Buyers Assistance scheme
• First Home Owner grant
• Deferral of transfer duty payment for off the plan transactions
• Exemptions for tenants of the Department of Housing and Aboriginal Housing Office

For contracts entered into on or after 1 July 2023, purchasers under the above schemes, grants or exemptions must move into their homes within 12 months of settlement and live in the property for a continuous 12-month period to satisfy the residence requirement.

Source: Revenue NSW

Who’s eligible for the First Homer Buyer Grant (Assistance Scheme)?

To qualify for the FHBAS

• the contract date must be on or after 1 July 2017 and must be for the whole property
• you must be an individual, (not a company or trust*)
• you must be over 18*
• you, and your spouse or partner, must never have owned or co-owned residential property in Australia
• you, and your spouse or partner, must never have received an exemption or concession under this scheme
• at least one of the first home buyers must be an Australian citizen or permanent resident.

*The Chief Commissioner may waive this requirement upon application. Contact Revenue NSW for more information.

 

West Legal & Associates

• Conveyancing
• Buying and Selling
• Family/Related Party Transfers
• First Home Buyers
• First Home Buyer Choice
• Probate/Estate Transmissions
• Related Party Exemptions
• Spousal Stamp Duty Exemptions
• Stamp Duty Assessments
• Stamp Duty Assessments Trusts
• Commercial Leasing

Flat-fee from $1,299 plus gst and disbursements (properties below $2M).
First Contract Review Free, then thereafter at $199 per Contract Review.

Our office manages all New South Wales property transactions from clients located inside and outside Australia. 

Call us today on 02 9191 7319 to get started.