Stamp Duty Tax

First homebuyers can now opt to pay an annual land tax rather than stamp duty.

NSW Premier Dominic Perrottet’s property tax scheme passed parliament. From 16 January, buyers can opt into the annual land tax and will not be required to pay stamp duty.

Whilst it will not be fully up and running until January 16, any first homeowners who buy from now will be eligible to receive a refund on their stamp duty if they choose to switch to the annual tax.

The new legislation will allow first home buyers to opt into a land tax for properties under $1.5 million, and vacant land under $800,000 and pay an annual levy of $400 plus a 0.3% tax on the value of their land.

The aim of the new property tax scheme is to provide first home buyers with a choice, allowing the opportunity to purchase sooner by reducing the time it takes to save for a deposit.

“People can now save huge sums of money on the biggest purchase of their life.”  -Dominic Perrottet

For a house purchase of $1 million it would take 23 years before reaching the value of stamp duty that would have been paid. While a unit at the same price would take 43 years.

For more information on eligibility and requirements click here.