First home buyers can now choose between paying stamp duty or property tax.
Stamp duty is payable when you purchase a property and the amount to be paid is calculated from the dutiable value (normally the purchase price) of the property, where the property tax will be an annual payment and the amount payable will be assessed on the land value of the property.
Only first home buyers can choose between paying the stamp duty or property tax. All other purchasers will have to pay stamp duty as normal.
The scheme commencement is for any eligible first home buyers that enter into a Contract on or after 11 November 2022. However, if settlement is due on or before the 15 January 2023 stamp duty will be payable and the first home buyer will need to apply for a stamp duty refund and then make application to elect to pay the property tax.
Existing first home buyers stamp exemptions and concessions are not changing. See our article “First Home Buyers – Things Western Sydney buyers need to know!”.
You can find more information at Revenue NSW 1300 139 814 or contact our friendly property department team on 02 4721 6200.
Written by Megan Johnson.
