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Monday, 16 January, marked the launch of the NSW government’s First Home Buyer Choice scheme.
Promised back in June by state Premier Dominic Perrottet, the initiative presents eligible first home buyers the opportunity to ditch stamp duty in favour of a smaller annual fee on properties purchased up to $1.5 million, with a full stamp duty exemption offered to properties up to $650,000 or a concession on properties between $650,000 and $800,000.
Under the scheme, “first home buyers who opt into the tax will pay an annual property rate of $400 plus 0.3 per cent of the land value of the property”.
Also kicking off from Monday, eligible first home buyers who purchased their home after 11 November 2022, when the initiative became law, can opt into the annual fee and receive a stamp duty refund within 10 business days.
Mr Perrottet said: “The new year brings a new choice for first home buyers.
“Our plan means first home buyers will shave years off the time needed to save for a property and will help them achieve their home ownership dreams.”
He added the scheme “will significantly reduce upfront costs, reduce the time needed to save for a deposit and will see most first home buyers pay less tax”.
Reports in November last year found nearly two-thirds of NSW first home buyers would opt into the annual property tax, while further research indicated 80 per cent of homes sold in the state would qualify for the scheme.
State Treasurer Matt Kean said the initiative is “empowering first home buyers to get a foot on the property ladder”, adding it would allow “97 per cent of first home buyers [to] get a leg up”.
The First Home Buyer Choice scheme has not been met with widespread rejoice, with a plethora of stakeholders including those at BIS Oxford Economics, PRD Tamworth, the Real Estate Institute of NSW (REINSW), and CoreLogic.
However, the scheme may not be in place for long, with Labor Leader Chris Minns proposing to overhaul the current system should his party win power at the 25 March state election.
Mr Minns announced last week his party would eliminate stamp duty for first home buyers purchasing a property below $800,000, as well as a concession rate for those obtaining a home valued between $800,000 and $1 million.
An online calculator is available for buyers weighing up whether to opt into the scheme or not.
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