First home buyers can opt this weekend to pay land tax after historic stamp duty laws pass.
New South Wales Premier Dominic Perrottet’s long-promised property reforms finally passed parliament, allowing first-time homebuyers to opt out of paying stamp duty in favour of a land tax. But Chris Minns of Labor says that if his party wins the state election, the law will be changed.
First-time homebuyers in Perrottet can get a refund on their stamp duty if they buy a property this weekend, even though the new property tax regime won’t go into effect until January 16.
NSW Treasury modelling shows that a first-time home buyer who bought an apartment for $1.5 million and paid an annual property fee would have to wait 63 years to pay the same amount of stamp duty in today’s dollars as they would have if they had paid an upfront fee.
It would take 52 years to pay off a $1.25 million unit.
The same modelling from the NSW Treasurer’s office shows that it would take 23 years to pay off a $1 million house and 43 years for a $1 million unit.
Over the next four years, the NSW government has given $728.6 million to First Home Buyer Choice.
Scheme Implementation
Starting November 12, the plan will be available to qualified first-time buyers. Until January 15, they will be required to pay stamp duty on purchases, but after that date, they will be eligible to ask for a refund of that duty in exchange for the annual fee.
Buyers who sign up for the annual land tax by January 16 will not have to pay stamp duty.
If you have any questions, please call us at 0426667696 or message us inquiry@ozbroker.com.au