The New South Wales government has vowed to make changes to stamp duty thresholds to allow more first home buyers to access concessions.
The government says it will introduce legislation this week to increase thresholds for stamp duty concessions so that five out of six first home buyers pay a reduced rate or no stamp duty.
Changes to the first home buyers assistance scheme will mean properties worth up to $800,000 will be exempt from stamp duty, lifting it from $650,000. Concessions will apply to properties worth up to $1m, up from $800,000.
The government says that 84% of first home buyers will pay no stamp duty or a reduced rate under the reforms.
According to the NSW government, a first home buyer purchasing an $800,000 property will save up to $31,090 under the changes.
“I understand the stress of trying to purchase your first home. I want more singles, couples and families realising this dream,” premier Chris Minns said.
“This is a fairer and simpler system to ensure more first home buyers have a chance of owning their first property.”
Legislation passed in November by the former Coalition state government allowed first home buyers of properties worth up to $1.5m to choose to pay annual land tax instead of paying upfront stamp duty.
Labor opposed the scheme – describing it as a “forever tax on your home” – and had vowed to scrap it. The new government says it will introduce legislation this week to do so.
Access to the former government’s scheme will be closed off on 1 July when the new stamp duty rules come into force.
The government says its new legislation will also place tighter scrutiny around first home buyer concessions, by adding an eligibility requirement that purchasers live in the home for at least a year. The previous requirement was for buyers to live in the property for six months.
The treasurer, Daniel Mookhey, said the move delivers a key election commitment.
“This policy will deliver the most help to the first home buyers most at risk of leaving the housing market altogether as interest rates go up.
“Now five out of every six 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.”
Source: The Sydney Morning Herald, The Guardian