First Home Buyer: Stamp duty or Property Tax?
- Posted By Shiral Alexander
The NSW Government is now offering first time home buyers the opportunity to pay an annual property tax rather than a single, upfront transfer duty payment for properties valued at up to 1.5M dollars. Unlike transfer duty, with this option, there is no need to make a payment at the time of settlement. Instead, the buyer will receive a notification of the amount due and the due date in the next quarter..
To be eligible for the First Time Home Buyer program in NSW, the following criteria must be met:
- The buyer must be an individual, not a company or trust.
- The buyer must be at least 18 years old.
- The buyer must be an Australian citizen or permanent resident, or have a co-buyer who meets this requirement.
- The buyer or their spouse must not have previously owned or held an interest in a residential property in Australia, nor have they received a First Home Buyer Grant or duty concessions.
- The property being purchased must be valued at $1.5 million or less.
- The buyer must move into the property within a year of purchase and live there for a minimum of 6 months.
- The contract of purchase must be signed on or after 11 November 2022.
You may use the First Home Buyer Choice calculator to help you compare the estimated property tax and stamp duty.
First-time homeowners have the option to pay either stamp duty or property tax prior to the completion of the purchase. This decision is irrevocable, and if they choose the latter, they must remain committed to the property tax until they no longer own the property.