From 1 July 2023, the NSW government abolished First Home Buyer Choice (the option for certain purchasers to choose between paying transfer duty or an annual property tax on their purchase). Purchasers who exchanged contracts before 30 June 2023 have until settlement of their transaction to choose between property tax and transfer duty on their purchase.
Purchasers who have opted to pay property tax instead of transfer duty will continue to do so for as long as they own the property.
First Home Buyers Assistance Scheme (FHBAS)
Full or partial exemption for transfer duty is still available for eligible buyers under the First Home Buyers Assistance Scheme. We have published a recent article about the scheme, but to recap, to qualify buyers must be purchasing their first home in Australia, be Australian citizens or permanent residents, and be at least 18 years old.
Changes to thresholds – FHBAS
From 1 July 2023, the transfer exemption threshold for new and existing home purchases by eligible first home buyers will increase from $650,000 to $800,000 and the concessional rate will increase from $800,000 to $1 million.
First home buyers who purchase a home for $1 million or more after 1 July 2023 will not be eligible for transfer duty exemptions or concessions and will need to pay full transfer duty.
Changes to residence requirements – FHBAS
Changes have been made to the residence requirements for purchasers who wish to participate in the FHBAS, First Home Owner Grant or deferral of transfer duty payment for off the plan purchases,
From 1 July 2023 a qualifying purchaser must move into their homes within 12 months of settlement and live in the property for a continuous 12 month period to satisfy the residence requirement.
If you would like more information on property related matters, or on this article, please contact any member of the Property team on (02) 8251 7777 or by email:
This publication is produced by Pigott Stinson. It is intended to provide general information only. The contents of this publication do not constitute legal advice and should not be relied upon as legal advice. Formal legal advice should be sought from us in respect of the matters set out in this publication. Liability limited by a scheme approved under Professional Standards Legislation.