In the 2022-23 NSW Budget the state government has provided homeowners an option to defer their upfront stamp duty costs by paying an annual fee.
This reform is only applicable to eligible first home buyers who are purchasing a home up to the value of $1.5 million.
Instead of paying stamp duty (normally 3-4% of land value) upon purchase, first home buyers can choose to pay it annually as a land tax. Opting for this, the payments would be:
- $400 per year, plus 0.3% of the land’s value, for a house occupied.
- $1,500 per year, plus 1.1% of the land’s value, for investment properties.
This will be available from 16 January 2023.
If you are exchanging contracts before this date, first home buyers may apply to ‘opt-in’ and then receive a refund or transfer of your paid stamp duty. Once the legislation is enacted further information on this application process will be made available.
The following website provides further details:
https://www.nsw.gov.au/initiative/first-home-buyer-choice
Please note this blog is general in nature and for information purposes only and should not be relied on for legal advice. Should you require advice regarding the information in this email please contact us so we may provide advice specific to your needs and circumstances.
