First home buyers will enjoy significant savings after the NSW Parliament passed legislation to make stamp duty exemptions and concessions available to more people.
This enacts a key commitment of the Minns Labor Government to implement a fairer, simpler way to help more first home buyers.
Under the reforms, the stamp duty exemption threshold will rise from $650,000 to $800,000 on July 1, 2023.
Additionally, stamp duty concessions will apply to properties worth between $800,000 and $1 million.
The measures will see first home buyers save up to $31,090.
The previous government’s unfair “forever” land tax scheme gave people paying between $1m and $1.5m much larger stamp duty reductions than those able to afford homes under $1m.
That scheme will close on 30 June 2023. However grandfathering provisions mean anyone who opted into it will be able to continue paying land tax until they sell their property.
The reform means that 84 per cent of first home buyers will be able to access the assistance, giving them an advantage over investors bidding for the same property.
Based on current market conditions, NSW Treasury expects around 8,600 first home buyers each year to qualify for a total exemption from stamp duty, and 4,400 people to enjoy a concessional rate of stamp duty.
Examples of benefits of the changes:
Purchase price | Current FHB stamp duty | New FHB stamp duty | Savings |
|---|---|---|---|
$700,000 | $10,363 | $0 | $10,363 |
$750,000 | $20,727 | $0 | $20,727 |
$800,000 | $31,090 | $0 | $31,090 |
$850,000 | $33,340 | $10,023 | $23,318 |
$900,000 | $35,590 | $20,045 | $15,545 |
$950,000 | $37,840 | $30,068 | $7,773 |
$990,000 | $39,640 | $38,086 | $1,555 |
Premier Chris Minns said:
“We promised to deliver a fairer and simpler way to help more first home buyers and that will become a reality from 1 July.
“Our changes will help more first home buyers to take a step onto the property ladder.
“This legislation will also see us deliver on our promise to abolish the former government’s property tax, a forever tax on the family home.”
Treasurer Daniel Mookhey said:
“Five out of every six first home buyers will pay no stamp duty or a concessional rate under the new system.
“Our simpler, fairer system will help first home buyers, allowing them to enter the market sooner and giving them a boost when competing with other buyers.”
