The new legislation aims at helping first home owners enter into the market and avoiding to have to save or finance a lump sum payment of stamp duty which is often thousands of dollars and calculated on the purchase or build price, noting the current exemptions for stamp duty do not reflect the real estate prices in much of the state.
The annual fee is $400 plus 0.3 per cent of their property’s land value not the actual purchase price, which may be more appealing for some buyers.
It is important to note that any first home buyers that purchase a property between 12 November 2022 to 15 January 2023 are able to apply for a refund of the stamp duty paid and opt into the new tax instead.
To be eligible, the following criteria needs to be met: –
- You need to be a first home buyer;
- You need to be 18 years or older;
- You need to be an Australian citizen or permanent resident;
- The property has to be valued at $1.5 million or less; and
- You need to reside in the property within the first year and for a minimum of 6 months.
It is important to note that if the property is sold, the tax will no longer apply to the property automatically and will only apply if the new owners are first home owners and choose to pay this annual tax.
Our conveyancing team are experienced in dealing with first home buyers and various exemptions if you have any queries and can assist you with the purchase of your property under this new scheme on (02) 4655 4224.