NSW stamp duty plan bid to boost homeownership
First homebuyers will be able choose to pay an annual fee instead of stamp duty on their first and future homes under a game-changing NSW Coalition policy bolster homeownership.
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First homebuyers will be able choose to pay an annual fee instead of stamp duty on their first and future homes under a game-changing NSW Coalition policy bolster homeownership.
Buyers will be able to own up to two homes at any given time and not pay stamp duty, which will only apply if they buy a third home.
A $1.5 million price threshold on eligible properties will also increase by $50,000 each year from 2023-24 under a policy the Coalition declares will save homebuyers tens of thousands of dollars while helping build wealth.
Under the plan, the First Home Buyer Choice (FHBC) program will be expanded to allow first home buyers who choose to pay a small annual fee on their first home in lieu of upfront stamp duty to be able to opt in to the annual fee on future property purchases.
This will occur until they choose to pay stamp duty.
Buyers who purchased a property after November 11 last year – and received stamp duty exemptions or concessions under the First Home Buyer Assistance Scheme – will also have the option to choose a small annual fee instead of stamp duty on future property purchases.
Premier Dominic Perrottet said reform was about giving families more choice throughout their home ownership journey so they can live in the “right home” at the “right time of their life”.
“We know that stamp duty is a significant barrier to home ownership, particularly for young people and families trying to break into the market for the first time,” he said.
“We’re making it easier for first home buyers, many of whom are families, to reach the dream of home ownership sooner as well as give them more choice into the future.
“This expansion gives families more choice when buying their next home, making it easier to upsize, move closer to loved ones, or relocate for a new job or when the kids start school.”
The existing FHBC scheme provides first home buyers with a choice between an annual property payment or stamp duty tax for properties valued up to $1.5 million.
The annual property payment is $400 plus 0.3 per cent of the value of the land for owner-occupiers.
Treasurer Matt Kean said first home buyers had already been take advantage of the scheme since it opened in January 16 with 1460 opting in, saving a total $56.2 million in stamp duty.
In a dig at Labor leader Chris Minns, whom he accused of running a “desperate and dishonest scare campaign”, Mr Kean noted how the Opposition leader’s own local government area had the second highest uptake of the scheme.
“In fact, Chris Minns’ very own constituents have rejected his spin with Bayside LGA having the second highest uptake of First Home Buyer Choice to date,” Mr Kean said.
“Under our policy, a family who buys their first home in Western Sydney for $1 million, sells it after five years and buys their second home for $1.5 million could save more than $90,000 over their first decade as homeowners.
“Under Labor, that same family will have to pay more than $106,000 in stamp duty.”
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Originally published as NSW stamp duty plan bid to boost homeownership
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