On 2 June 2023, Revenue NSW announced an increase to the first home buyer assistance threshold and other changes to the NSW housing grants and schemes. The changes are summarised below:
The transfer duty exemption thresholds will change
From 1 July 2023, the transfer duty exemption threshold for new and existing home purchases by eligible first home buyers will be increased from $650,000.00 to $800,000.00 and the concessional rate will be increased from $800,000.00 to $1 million. First home buyers who purchase a home for $1 million or more on or after 1 July 2023 are ineligible for transfer duty exemptions or concessions and will be required to pay transfer duty.
The Government will be closing off access to the First Home Buyers Choice
Eligible purchasers who enter into contracts on or before 30 June 2023 will have up until the date of settlement to opt-in to the First Home Buyers Choice. Purchasers who have opted into the First Home Buyers Choice will continue to pay property tax for as long as they own that property and will remain exempt from transfer duty on that purchase.
From 1 July 2023 there will no longer be an option to choose between property tax and transfer duty on new purchases.
The residence requirement will change for the following:
- First home buyers’ assistance scheme;
- First homeowner grant;
- Deferral of transfer duty payment for off the plan transactions; and
- Exemptions for tenants of the Department of Housing and Aboriginal Housing office.
For contracts entered into on or after 1 July 2023, eligible purchasers under the above-mentioned schemes, grants, or exemptions must move into their homes within 12 months of settlement and live in the property for a continuous period of 12 months to satisfy the residence requirement.
If you have any questions or queries, do not hesitate to reach out to our property team!