From 1 July 2023, the New South Wales Government has changed the thresholds for the exemption from payment of stamp duty for new or existing homes and the time periods in which purchasers have to live in the property. Also, the First Home Buyers Choice Scheme will close.
First Home Buyer Assistance Scheme
Under the First Home Buyer Assistance Scheme (FHBAS), eligible first home purchasers who buy a new or existing home for $800,000 or less will be exempt from the payment of stamp duty. This has increased from $650,000. There are also concessions which apply for payment of stamp duty between $800,000 and $1,000,000, after which normal stamp duty rates apply. This has increased from between $650,000 and $800,000.
The stamp duty thresholds for vacant land will remain unchanged. Eligible first home purchasers who buy vacant land for $350,000 or less will be exempt from the payment of stamp duty. There are also concessions which apply for the payment of stamp duty between $350,000 and $450,000, after which normal stamp duty rates apply.
The other change to the FHBAS, for contracts exchanged on or after 1 July 2023, is the requirement for the purchaser to move into the property within 12 months of the date of settlement of the purchase and to live in the property for a continuous period of 12 months. Previously this was a continuous period of 6 months.
First Home Buyers Choice
From 1 July 2023 the First Home Buyers Choice Scheme, where you could elect to pay an annual property tax payment in lieu of stamp duty, will close. Those who opted into the scheme before 1 July 2023 will continue to pay the property tax during their ownership of that property.
If you have any questions in relation to the above or we can assist you with the purchase of your first home or vacant land, contact our office.