May 01, 2023
First-home buyers in NSW could get a big leg up from the state government, with a proposal to lift the stamp duty exemption cap from $650,000 to $800,000.
One of Labor’s signature election promises, the government will introduce the legislation once parliament resumes this week. It will also cancel the Coalition’s First Home Buyer Choice (FHBC) scheme from July 1 despite protest from the opposition.
Under the new policy, first-home buyers will not have to pay stamp duty on homes under $800,000, which could save them up to $31,090. They will also access significant concessions for homes up to $1m; however, the benefits will be costed on a sliding scale depending on the cost of the home.
For example, a first-home buyer will have to pay a stamp duty of $10,023 (saving $23,318 on existing rates) on a property worth $850,000. However, a home worth $990,000 will incur $38,086 in stamp duty fees, with the savings significantly reduced to $1555.
Buyers will also be required to live at their chosen property for 12 months, instead of six, in a move the government hopes will improve the integrity of the benefits.