First Home Buyer Choice Scheme And What It All Means - Laver

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First Home Buyer Choice Scheme And What It All Means

Wed Nov 23

The NSW government has legislated that as of the 16th of January 2023, there will be changes to the way stamp duty is paid for First Home Buyers. Rather than paying stamp duty as a lump sum upfront, under the new legislation, First Home Buyers will be given the alternative to pay as follows:

You will now only have to pay $400 p/a plus 0.3% of the property’s land value.

As an example:

On an $830,000 apartment, previously you would pay $32,440 in stamp duty*.
Now, assuming a land value of $265,000 (on $830k), you would pay an annual property tax of $1195.

*(Example of $830,000 apartment only with assumed $265,000 land value).

This effectively means that the state government is giving you roughly 27 years to pay off the stamp duty, interest free!

This significantly reduces upfront costs, reduces the time to save for a deposit and allows you to get in to the market sooner!

A reminder – this does not mean you have to wait until the 16th of January, 2023. Anyone who signs a contract from the 12th of November, 2022 can apply for a refund on their stamp duty and opt into the tax instead.

Handy references: Stamp Duty Calculator

Click Here to Download a handy PDF reference

Disclaimer: Laver is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant information having regard to your objectives, financial situation and needs.
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