Greater assistance for first home buyers in NSW
3 mins reading time
It’s no secret that young people and first home buyers are feeling the financial crunch. According to recent analysis from Commonwealth Bank Australia, those in younger age brackets, who would primarily make up the demographic of first home buyers, are saving less than they were a year ago. But it’s not all doom and gloom. Legislation changes in New South Wales has rolled out amendments to ease some of the financial stress for those looking to purchase their first home.
On 1 July 2023, the First Home Buyer Legislation Amendment Act 2023 (‘Act’) commenced in NSW, with two major changes.
Increase to threshold for stamp duty exemptions and concessions
First home buyers can expect to pay a little bit less if they have entered into a contract to purchase a home on or after 1 July 2023, with a purchase price of less than $1,000,000.
Under the amending Act, eligible first home buyers:
- will not pay stamp duty for homes valued up to $800,000;
- will pay concessional stamp duty for homes valued between $800,000 and $1,000,000; and
- will be required to live in the home for a continuous period of 12 months. The continuous period of 12 months must commence within 12 months after the date of settlement of the purchase.
Dates: Will the amendments apply to you?
It’s important to note that the amendments under the Act apply to contracts to purchase land entered into on or after 1 July 2023, so if you purchased a house prior to the amendments – they will not apply to you.
The above changes also do not apply to transfers made under a contract for the purchase of land entered before 1 July 2023, even if the settlement date is after 1 July 2023.
End to the opt-in annual property tax
The Act also closed off access to the First Home Buyer Choice scheme which offered first home buyers the choice of paying an annual property tax instead of transfer duty. The scheme was available from 16 January 2023 until 30 June 2023.
The date on which you entered a contract to purchase is important here. The opt-in scheme remains open for eligible first home buyers who entered a contract to purchase land before 1 July 2023 but with a settlement date on or after 1 July 2023, so have a look at your contract date to confirm what applies to you.
Get quality advice when purchasing your first home
If you are looking at purchasing a property, or would like to discuss what schemes you are eligible for and what options are available to you, please feel free to contact our New South Wales Property and Construction team. Purchasing your first home is a lengthy and often stressful process so having a team to step you through the process is always advisable.
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Greater assistance for first home buyers in NSW
It’s no secret that young people and first home buyers are feeling the financial crunch. According to recent analysis from Commonwealth Bank Australia, those in younger age brackets, who would primarily make up the demographic of first home buyers, are saving less than they were a year ago. But it’s not all doom and gloom. Legislation changes in New South Wales has rolled out amendments to ease some of the financial stress for those looking to purchase their first home.
On 1 July 2023, the First Home Buyer Legislation Amendment Act 2023 (‘Act’) commenced in NSW, with two major changes.
Increase to threshold for stamp duty exemptions and concessions
First home buyers can expect to pay a little bit less if they have entered into a contract to purchase a home on or after 1 July 2023, with a purchase price of less than $1,000,000.
Under the amending Act, eligible first home buyers:
- will not pay stamp duty for homes valued up to $800,000;
- will pay concessional stamp duty for homes valued between $800,000 and $1,000,000; and
- will be required to live in the home for a continuous period of 12 months. The continuous period of 12 months must commence within 12 months after the date of settlement of the purchase.
Dates: Will the amendments apply to you?
It’s important to note that the amendments under the Act apply to contracts to purchase land entered into on or after 1 July 2023, so if you purchased a house prior to the amendments – they will not apply to you.
The above changes also do not apply to transfers made under a contract for the purchase of land entered before 1 July 2023, even if the settlement date is after 1 July 2023.
End to the opt-in annual property tax
The Act also closed off access to the First Home Buyer Choice scheme which offered first home buyers the choice of paying an annual property tax instead of transfer duty. The scheme was available from 16 January 2023 until 30 June 2023.
The date on which you entered a contract to purchase is important here. The opt-in scheme remains open for eligible first home buyers who entered a contract to purchase land before 1 July 2023 but with a settlement date on or after 1 July 2023, so have a look at your contract date to confirm what applies to you.
Get quality advice when purchasing your first home
If you are looking at purchasing a property, or would like to discuss what schemes you are eligible for and what options are available to you, please feel free to contact our New South Wales Property and Construction team. Purchasing your first home is a lengthy and often stressful process so having a team to step you through the process is always advisable.