First home buyers options

If you are a first home buyer in NSW, you may be eligible for an exemption from transfer duty under the First Home Buyers Assistance Scheme for properties valued up to $650,000, or a concession for properties valued between $650,001.00 and $800,000.

Under the First Home Buyer Choice Scheme, from 16 January 2023 eligible purchasers of properties valued over $800,000 and less than $1.5million, may choose to pay an annual property tax instead of transfer duty. The property tax will only be payable by first home buyers who choose this option and will not apply to subsequent purchasers of the property. Different thresholds apply to the purchase of vacant land under both Schemes.

Once you have made your choice to opt into the property tax, you cannot change your mind once settlement has taken place. If you choose to opt-in to this Scheme, you have until settlement of your purchase to change your mind and seek a reassessment to pay the transfer duty. You may purchase a property with someone else who is not eligible, referred to as an equity partner, and partially opt-in. You must own at least 50% or more of the property to be eligible. The equity partner cannot be your spouse. Transfer duty is payable on your equity partner’s share of the property.

The property tax will be calculated based on the land value of the property with assessments being issued annually.

If you purchased a property between 11 November 2022 and 15 January 2023, you may apply for a retrospective reassessment and refund of the transfer duty that you have paid. Retrospective applications must be lodged by 30 June 2023.

Existing first home buyer eligibility criteria still applies to all Schemes. More information can be found at www. revenue.nsw.gov.au

Disclaimer: This article is provided for information purposes only. The contents should not be relied on as legal or financial advice