What are the changes for first home buyers in NSW?
Changes to First Home Buyers Stamp Duty Scheme in New South Wales (NSW)
The New South Wales (NSW) government plans to make changes to stamp duty thresholds to provide more concessions for first home buyers.
Under the proposed changes, properties worth up to $800,000 will be exempt from stamp duty, up from the previous threshold of $650,000, and concessions will apply to properties worth up to $1 million, up from $800,000.
The reforms aim to alleviate the financial burden on first home buyers and provide them with more opportunities to enter the housing market. For instance, a first home buyer purchasing an $800,000 property could save up to $31,090 under the new changes. Premier Chris Minns emphasizes the importance of helping more singles, couples, and families realize their dream of homeownership, describing the reforms as a fairer and simpler system.
The previous Coalition state government had introduced legislation in November that allowed first home buyers purchasing properties worth up to $1.5 million to choose to pay annual land tax instead of upfront stamp duty. However, the Labor opposition opposed this scheme, labeling it a “forever tax on your home,” and pledged to scrap it. The current government intends to follow through on this promise by introducing legislation to repeal the scheme. The new stamp duty rules, along with the closure of the previous scheme, are planned to take effect on 1 July.
Additionally, the NSW government’s new legislation will introduce tighter scrutiny of first home buyer concessions. It will include an eligibility requirement mandating that purchasers live in the home for at least one year, an increase from the previous requirement of six months.
The above changes to the First Home Buyer NSW legislation are being proposed and we are awaiting a final outcome as to how the proposed changes will be applied and eligibilty requirements especially for contracts that have been exchanged but not yet settled.
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
- Commerical Leasing
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