Big savings within reach for first home buyers
Significant savings for first home buyers are closer to reality today as legislation to lift thresholds for stamp duty exemptions and concessions passed the NSW Legislative Assembly late last night.
The NSW Government has moved swiftly to enact its commitment to have more first home buyers pay zero or a reduced rate of stamp duty under the First Home Buyers Assistance Scheme and abolish the previous government’s forever land tax.
The legislation lifts the thresholds for stamp duty exemptions under the First Home Buyers Assistance Scheme from $650,000 to $800,000 and stamp duty concessions from $800,000 to $1 million. Based on current market conditions, NSW Treasury expects about 8600 first home buyers in the $650,000 to $800,000 range to enjoy total exemption from paying stamp duty each year, while about 4400 first home buyers in the $800,000 to $1 million range will now enjoy a concessional rate of stamp duty.
First home buyers purchasing a property for $800,000 stand to save $31,090 in stamp duty upon the legislation passing NSW Parliament. The First Home Buyer Legislation Amendment Bill 2023 will now be debated in the Legislative Council on Thursday 1 June, with the new thresholds due to begin on 1 July 2023.
Treasurer Daniel Mookhey said:
“The Premier and I repeatedly said we wanted to see more first home buyers pay zero stamp duty rather than the former government’s forever land tax, and we are now one step closer to enacting this commitment.
“This is a fairer and simpler way to help more first home buyers get into the market.
“The former government’s inequitable land tax program was delivering 50% of the additional benefit in duty forgone to just 13% of first home buyers.
“These changes will help 5 out of every 6 first home buyers pay no stamp duty, or a concessional rate, and delivers a key election commitment to abolish the annual property tax.”