From 1 July 2023, the transfer duty exemption threshold for new and existing home purchases by eligible first home buyers will increase from $650,000 to $800,000, and the concessional rate will increase from $800,000 to $1,000,000.
The Government is also closing off access to First Home Buyer Choice.
What do the changes to stamp duty mean for first home buyers?
To put it simply, if you are an eligible first home buyer, you will now pay no stamp duty up-to $800,000, then, discounted stamp duty up to $1,000,000.
If you are a first home buyer purchasing for above $1,000,000 you will pay normal stamp duty.
What if I purchased a property prior to 30th of June 2023?
Purchasers who exchange contracts on or before 30 June 2023 have up until settlement to opt-in to First Home Buyer Choice. From 1 July 2023 there will be no option to choose between property tax and transfer duty on new purchases.
Furthermore, if the date on the contract is prior to 01/07/2023, you will pay no stamp duty up to $650,000, then discounted to $800,000.
This is a sigh of relief for anyone who purchased an off-plan property wanting to go on the first home buyer choice incentive.
What are the requirements for living in the property
For contracts that exchange on or after 1 July 2023
You or one of the other eligible first home buyers must:
- move into the home within 12 months after buying the property, and
- live there for at least 12 continuous months.
- the contract date must be on or after 1 July 2023 and must be for the whole property
- you must be an individual, (not a company or trust*)
- you must be over 18
- you, and your spouse or partner, must never have owned or co-owned residential property in Australia
- you, and your spouse or partner, must never have received an exemption or concession under this scheme
- at least one of the first home buyers must be an Australian citizen or permanent resident.
Further details can be viewed via the NSW Government’s website. Please contact our office to see if you can benefit from this scheme.