I am planning to buy my first home
What the proposed property tax reform could mean for you.
Help to enter the housing market.
Under the proposed changes, eligible first home buyers could have access to a $25,000 grant and the choice to pay a once-off stamp duty or an annual property tax.
First home buyers
Amanda and Tim are looking to buy their first home. They have a budget of $750,000 and will upgrade to a larger home in the coming years as their family grows. When buying their new home, they would be able to choose to pay the once-off stamp duty or the proposed annual property tax. As eligible first home buyers, they could also receive a $25,000 grant to spend as they wish.
|2021 First home $750,000||Total tax over 10 years||After $25,000 grant (savings)|
|Stamp duty or||$29,085||$29,085||-$4,085|
|Property tax||Starting at $1,143 p/a||$13,590*||+$11,410|
Total savings over 10 years by choosing the property tax: +$15,495
To provide flexibility to move as their family grows, Amanda and Tim choose to pay the annual property tax instead of stamp duty, and save $15,495 over 10 years.
* An (illustrative) estimated growth rate of 3.8% per year has been applied to the property tax payment.