‘Historic’ stamp duty legislation gets green light in NSW
Six months after they were originally proposed, the NSW Stamp Duty Reforms were passed by the State Parliament.
The law, which offers first-time home buyers the option of paying a smaller annual property tax or significant upfront stamp duty on their first propertywas ratified on Thursday 10 November.
Prime Minister Dominic Perrottet believes the changes will make “the great Australian dream of home ownership much easier for a generation of young families”.
NSW Treasury analysis submitted to Parliament earlier this month revealed that two-thirds of first-time home buyers will opt against paying stamp duty, with additional research indicating that up to 80% of house sales could benefit from the device.
“For the first time, we will give first-time home buyers a choice, helping thousands of people save around two years on the time needed to save for a deposit,” the Prime Minister said, adding that “people can now save huge amounts of money”. money on the biggest purchase of their life.
Additionally, State Treasurer Matt Kean said the new legislation will help more young people access the financial security that comes with home ownership by “significantly [reducing] upfront costs, reduce the time it takes to save for a deposit, and see the majority of eligible first-time home buyers pay less tax overall.”
“We give people the opportunity to decide for themselves what is best for their financial situation,” he said.
Angus Raine, executive chairman of Raine & Horne, welcomed the changes, which he called “game changers”.
“Thousands of first-time home buyers will now be able to realize their dream of home ownership sooner after the passage of this legislation which will allow them to choose between an annual ground fee or an upfront stamp duty payment” , did he declare.
Mr Raine praised the changes made by the New South Wales government for helping more residents “get onto the homeownership ladder faster – and better still, with First Home Buyer Choice, it won’t there is no income cap on eligibility.
However, industry sentiment has not been entirely positive towards the latest legislation.
Adina Cerson, acting executive director of the Property Council of Australia NSW, said the group was “disappointed that there is no integrated review of reform to ensure there is no ‘increasing cost of housing development, and it does not have a disproportionate impact on other parts of the housing sector as it has in ACT over the last 10 years’.
First-time home buyers will be able to access the program beginning Saturday, November 12; however, these buyers will be required to pay stamp duty on purchases made through January 15, 2023. From then on, they will be able to request a refund of their stamp duty if they choose to participate in the program.
From January 16, 2023, eligible buyers can opt directly for the annual fee without having to pay stamp duty.
An online toolkit is available to help buyers struggling with the decision to calculate which avenue of purchase is best for them.
First Home Buyer Choice will be available for homes costing up to $1.5 million, while for buying vacant land to build a first home, the price cap will be up to $800,000. $.
Over the next four years, the NSW Government has allocated $728.6 million to the First Home Buyer Choice scheme.