The First Home Buyer Choice is a New South Wales Government Scheme, which commenced on 16 January, 2023. This provides buyers with the choice of paying transfer (stamp) duty or opt into paying property tax annually. This Scheme is applicable to contracts entered into on or prior 30 June 2023.
This scheme is available for first home buyers who:
- Signed a contract on or after 16 January, 2023; or
- Purchased their home between 11 November, 2022 and 15 January, 2023.
For those who purchased and settled prior to 16 January, 2023 may apply to Revenue NSW for a refund of the stamp duty and choose to pay property tax. This is available until 30 June, 2023.
You cannot opt out of the property tax once settlement is complete or if Revenue NSW has processed your application for a duty refund.
What is Property Tax?
Property tax is an annual tax calculated based on your property’s land value and determined by the NSW Valuer General.
You are liable for property tax from the completion date (i.e. the day settlement is completed). Property tax will be assessed each financial year and can be paid quarterly or in annual instalments like council rates.
You can compare stamp duty and property tax with the First Home Buyer Choice calculator on the Service NSW website.
Eligibility
To be eligible for this scheme:
- You must be an individual over the age of 18 years;
- You, or the person you are buying with, must be an Australian citizen or permanent resident; and
- You or your spouse must not have previously:
- owned or co-owned residential property in Australia; and
- received a First Home Buyer Grant or duty concessions.
Property Eligibility
The property must be either:
- A new or existing home in NSW valued under $1,500,000; or
- Vacant land in NSW, on which you intend to build your first home, with a value not exceeding $800,000.
Residence Requirement
If purchasing a new or existing home, you must move into the property within 12 months of settlement and live in the property as your principal place of residence for a continuous period of at least 6 months. If purchasing vacant land, the residence requirement is different.
You must inform Revenue NSW if your land use changes (i.e. no longer occupying the property) within 3 months from the date land use changed.
How to Apply
To apply for the scheme you must:
- Complete the First Home Buyer Choice Application Form;
- Complete the Purchaser/Transferee Declaration for each purchaser; and
- Provide certified proof of identity documents
These documents must be completed prior to settlement.
Contact W Legal Group
If you require any assistance or have any questions, feel free to reach out to W Legal Group via hello@wlegalgroup.com.au or on any of our Australian phone numbers.
