Under the Minns Labor Government’s changes to the First Home Buyers Assistance scheme, the threshold for stamp duty exemptions for first home buyers will be lifted from $650,000 to $800,000 and stamp duty concessions from $800,000 to $1 million.
That means a first home buyer purchasing a property at $800,000 will save up to $31,090 under the changes.
The legislation will also improve the integrity and targeting of first home buyer assistance programs, increasing the requirement to live in the home from 6 months to 12 months.
The government will close off access to the former government’s First Home Buyer Choice (FHBC) scheme on Saturday 1 July 2023.
Legislation will include grandfathering provisions so first home buyers who opted into the annual property tax can continue to pay that tax until they sell their property.
The changes to the First Home Buyers Assistance scheme will result in a simpler, fairer system than FHBC, where first home buyers purchasing properties at the top of the range under the former government’s scheme received a disproportionate share of the benefits.
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 | $7773 |
|---|
| $990,000 | $39,640 | $38,086 | $1555 |
|---|
NSW Premier Chris Minns said:
“I understand the stress of trying to purchase your first home. I want more singles, couples and families realising this dream.
“Under Labor any property purchased under $800,000 will have absolutely no stamp duty, and any property purchased up to $1 million will have a reduced rate.
“This is a fairer and simpler system to ensure more first home buyers have a chance of owning their first property.”
NSW Treasurer Daniel Mookhey said:
“This delivers a key election commitment to abolish the property tax, a forever tax on your own home.
“More first home buyers will pay no tax under Labor’s scheme instead of a land tax.
“This policy will deliver the most help to the first home buyers most at risk of leaving the housing market all together as interest rates go up.
“Now 5 out of every 6 first home buyers will get help to own the roof over their heads. It will benefit more first home buyers overall and more fairly goes to those who need it most.
“The new thresholds for stamp duty exemptions and concessions are a simpler and fairer way to help more first home buyers than the property tax, which helped a smaller cohort of first home buyers.”
