ARTICLE · 18 JANUARY 2023

First home buyers now have a choice when paying stamp duty

Watkins Tapsell

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The NSW government has introduced the First Home Buyer Choice Scheme.

AustraliaTax

Samantha Thatcher

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The NSW Government has introduced the First Home Buyer Choice Scheme. The First Home Buyers Choice allows First Home Buyers the choice of how they pay their stamp duty. You can either:

Pay stamp duty up front at settlement; or
Elect to pay an annual property tax for the lifetime that you own the property.

The choice of the new annual property tax is available to first home buyers on purchases of residences (new or existing homes) for prices up to and including $1,500,000.00 or purchases of vacant land on which you intend to build a home, for prices up to and including $800,000.00.

The scheme was passed by NSW Government on 11 November 2022 and comes into effect officially on the 16 January 2023, however you may be able to change the choice you made if you exchange contracts any time after 11 November 2022 and settle in between these dates (11 November 2022-15 January 2023) and have paid stamp duty in full. You can still apply to pay annual property

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