Changes to the First Home Buyers Scheme – 1st July

The NSW Government will introduce legislation into NSW Parliament to create a simpler, fairer stamp duty concession scheme ensuring 84% or 5 out of every 6 of future first home buyers will pay no tax or a reduced rate, starting from Saturday 1 July 2023.

Under the Minns Labor Government’s changes to the First Home Buyers Assistance scheme, the threshold for stamp duty exemptions for first home buyers will be lifted from $650,000 to $800,000 and stamp duty concessions from $800,000 to $1 million.

That means a first home buyer purchasing a property at $800,000 will save up to $31,090 under the changes.

The legislation will also improve the integrity and targeting of first home buyer assistance programs, increasing the requirement to live in the home from 6 months to 12 months.

The government will close off access to the former government’s First Home Buyer Choice (FHBC) scheme on Saturday 1 July 2023.

Legislation will include grandfathering provisions so first home buyers who opted into the annual property tax can continue to pay that tax until they sell their property.

The changes to the First Home Buyers Assistance scheme will result in a simpler, fairer system than FHBC, where first home buyers purchasing properties at the top of the range under the former government’s scheme received a disproportionate share of the benefits.

NSW Premier Chris Minns said:

“I understand the stress of trying to purchase your first home. I want more singles, couples and families realising this dream. Under Labor any property purchased under $800,000 will have absolutely no stamp duty, and any property purchased up to $1 million will have a reduced rate. This is a fairer and simpler system to ensure more first home buyers have a chance of owning their first property.”

Source – NSW Government 

Image – The Property Co. Group