Dominic Perrottet’s land tax reforms pass NSW upper house

Land tax reform plans that would give first homebuyers the option of paying stamp duty or an annual fee have gone before parliament. Find out how NSW politicians voted.

First homebuyers could head out to auctions from Saturday with the promise of getting a refund on their stamp duty after the government’s land tax reforms passed the upper house.

Those purchasing their first home will now have the option to pay the traditional upfront stamp duty or opt in for the new annual land tax, after crossbench members including Mark Latham, Fred Nile and the Animal Justice Party supported the change and amid opposition from Labor.

“This is all about choice. It’s all about helping young people right across NSW reach the Great Australian Dream,” Premier Dominic Perrottet said ahead of the reforms passing.

“It’s taking on average around two years for people to save that stamp duty. This will enable young people particularly to get into the housing market faster, to have their wealth grow with that. Rather than going backwards, they will be going forwards.”

Labor has previously announced if elected they’ll repeal the reform, following a campaign where they criticised the move as a “forever tax” on the family home, in a move which could cause uncertainty for buyers until the March NSW election.

Premier Dominic Perrottet speaks to first home buyers Chloe Flannery and Derek Halawa at Schofields on Thursday. Picture: NCA NewsWire

Buyers who purchase their properties from this weekend will still have to pay stamp duty until January 15 but will then be eligible for a refund of their stamp duty if they choose to opt into the annual fee.

Purchasers can then opt in to the annual fee directly and won’t have to pay stamp duty from January 16.

The new changes will be available for homes costing up to $1.5 million, with no limit on how many first home buyers can access the

The program is uncapped and will be available for every eligible first homebuyer who wants to access it.

The annual tax for first homebuyers purchasing a home to live in will be $400 plus 0.3 per cent of land value.

Young Schofields couple Derek Halawa and Chloe Flannery purchased a new home off the plan and will be eligible for the refund.

Ms Flannery said having paying a land tax would leave the family better off than having to pay the upfront stamp duty. was important for her young family

“(To have this option) it’s life changing,” she said.