NSW Labor has announced a huge election promise to abolish or significantly cut stamp duty for eligible first home buyers.
Prospective homeowners won’t have to pay stamp duty at all when buying a home with a value up to $800,000, plus a significant concessional rate given to properties priced under one million. Current schemes are capped at property values of $650,000 for full stamp duty exemption, and $800,000 for a discounted rate.
“I understand the stress of trying to purchase your first home. I want more singles, couples and families realising this dream,” said NSW Opposition leader, Chris Minns who will going to the polls on March 25.
“Under Labor any property purchased under $800,000 will have absolutely no stamp duty, and any property purchased up to $1 million will have a reduced rate.
“What I will not do is saddle first home buyers with a new, yearly tax bill that increases every year.”
NSW Labor has announced a huge election package to abolish or significantly cut stamp duty for first home buyers.
Stamp duty rates applies to the charges involved when transferring the ownership of a property, and is paid for by the buyer. Using figures from the Australian Bureau of Statistics, the stamp duty of an average home (valued at $1,125,600) in NSW is roughly $46,108.
Under existing measures, the First Home Buyer Assistance Scheme waives the transfer duty on homes valued up to $650,000, with a concessional rate given to properties up to $800,000.
First home buyers can also access a $10,000 grant for new homes under the First Home Owner’s Grant (New Homes) for properties under the value of $750,000 which have no been lived in before.
The NSW Labor Party suggests this applies to 95 per cent of all first home buyers across the state.
Initial modelling done by the Parliamentary Budget Office (PDO) suggests that within three years, 27,700 first home buyers will benefit by paying no stamp duty at all, with 18,800 qualifying for the reduced rate.
The scheme has been costed at $722 million, with funding for the plan taken from the government’s land tax reforms introduced in November of last year.
Libs give FHB choice between stamp duty and property fee
In November, Dominic Perrottet’s Liberal government passed the First Home Buyer Choice legislation which gives new homeowners the choice between paying stamp duty, or an annual property fee.
While the plan was criticised for creating a “forever tax,” Mr Perrottet said the reforms would help people get into the housing market sooner.
“The great Australian dream of home ownership just got much easier for a generation of
young families,” he said.
“For the first time we will provide first home buyers with a choice, helping thousands of
people to shave around two years off the time needed to save for a deposit.”
The plan is applicable to dwellings up to the value of $1.5 million, or vacant land up to $800,000.
In costing done by the NSW Treasury, a $1 million property bought and re-sold within 10 years would incur a property fee of $19,881, compared to stamp duty feeds of $40,909.
First home buyers from January 16 onwards can access the scheme, however households who’ve bought a home between November 12, 2022 to January 15, 2023 have the option to apply for a stamp duty refund.