New Changes To Property Purchase Tax are coming into effect. Here is what it means to you.
Earlier this year, we reported that the NSW Government had introduced a new scheme, First Home Buyer’s Choice, which allowed purchasers of properties up to $1.5 million to choose between paying stamp duty or annual land tax.
With the change in state government, this scheme has been abolished, effective 1 July 2023.
What does this mean for new home buyers?
If you exchange contracts on or before 30 June 2023, and you’re eligible, you’ll be able to opt into the scheme before it ends.
If you haven’t exchanged by 1 July 2023, you’ll no longer be able to make the choice.
If you’ve already opted in, you won’t be impacted, and the choice you’ve made will last as long as you continue to own the property.
The NSW Government has introduced other changes for first-home buyers.
Change of name for stamp duty
Stamp duty is now called transfer duty.
First Home Buyers Assistance Scheme
From 1 July 2023:
- If you exchange contracts or purchase a home up to $800,000, you might receive an exemption from transfer (or stamp) duty.
- If the home is up to $1,000,000, a reduced (known as concessional) rate might apply.
Your solicitor or conveyancer, who will lodge your application for a sale or transfer contract, will know whether you are eligible for any exemptions or concessions.
The requirements are that:
- this must be your first home purchase in Australia and
- the value must be less than $1million
- you need to move into the home within 12 months after you settle and live there without interruption for another 12 months.
First Home Owner Grant (New Home)
The NSW Government has also extended the requirement to live in the property continuously from six months to 12 months.
To make sure you are in the best possible position when buying your property, be sure to speak to one of our dedicated solicitors at CM Lawyers – they’ll guide you through the process and make sure your interests are protected.