Thousands of first home buyers will no longer pay stamp duty from tomorrow, when a fairer, simpler First Home Buyers Assistance Scheme (FHBS) begins.
On Saturday 1 July, the threshold for stamp duty exemptions will increase from $650,000 to $800,000 and the threshold for stamp duty concessions will rise from $800,000 to $1 million.
It means first home buyers purchasing a property up to $800,00 will pay no stamp duty, saving up to $30,735 under the changes.
Based on the current housing market, NSW Treasury expects about 8600 first home buyers in the $650,000 to $800,000 range to pay no stamp duty over the next year, and about 4400 first home buyers in the $800,000 to $1 million range to pay a concessional rate of stamp duty.
The former government's unfair "forever" land tax scheme gave people paying between $1 million and $1.5 million much larger stamp duty reductions than those able to afford homes up to $1 million.
The former scheme closes on Friday 30 June 2023. Buyers who opted in will continue to pay property tax until they sell that property.
Purchase price |
Stamp duty without FHBAS |
New stamp duty with FHBAS |
Savings |
|---|---|---|---|
$650,000 |
$23,985 |
$0 |
$23,985 |
$750,000 |
$28,485 |
$0 |
$28,485 |
$800,000 |
$30,735 |
$0 |
$30,735 |
$850,000 |
$32,985 |
$9,934 |
$23,051 |
$900,000 |
$35,235 |
$19,868 |
$15,367 |
$950,000 |
$37,485 |
$29,801 |
$7,684 |
$990,000 |
$39,285 |
$37,748 |
$1,537 |
Suburbs where the house price median is between $650,000 and $800,000 include: Colyton, Hassal Grove, Cambridge Park, North St Marys, Richmond, Werrington, Rosemeadow, Warragamba, Leumeah and Whalan.
Suburbs where the apartment price median is between $650,000 and $800,000 include: Waitara, Ashfield, Padstow, Arncliffe, Kogarah, Petersham, Epping, Hillsdale, Sutherland and Wolli Creek.
Suburbs where the house price median is between $800,000 and $1 million include: Guildford, Smithfield, Casula, Liverpool, Ashcroft, Prestons, Fairfield Heights, Merrylands West, Seven Hills and Prospect.
Suburbs where the apartment median price is between $800,000 and $1 million include: Waterloo, Maroubra, Surry Hills, Ultimo, Lewisham, Leichhardt, Oatlands, Castle Hill and Baulkham Hills
Regional centres where the median house price is between $650,000 and $800,000 include: Valla Beach, Bellingen, Sandy Beach, North Arm Cove, Coffs Harbour, Batemans Bay, Queanbeyan West, Albury, Eden and Braidwood.
Treasurer Daniel Mookhey said:
"July 1 will be a great day for thousands of extra first home buyers who will now pay zero stamp duty on their first home purchase.
"These changes will help 5 out of every 6 first home buyers pay no stamp duty, or a concessional rate, and deliver a key election commitment.
"The changes implemented ensure first home buyer assistance in NSW is simpler and fairer, helping those who most need support.
"We know stamp duty can be a considerable barrier for first home buyers. The changes starting today will allow thousands of first home buyers to enter the market sooner and give them a boost when competing with other buyers."
