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02 4396 4895

02 4311 2387

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1/313 Main Road, Toukley NSW 2263

Belmont Office

02 4067 9871

02 4311 2387

0411 986 459

470 Pacific Hwy, Belmont NSW 2280

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Potential Changes to First Home Buyers in 2023

25/05/2023

There has been several mentions in the media of the proposed changes to the First Home Buyers Choice, the First Home Buyers Assistance Scheme, the First Home Owner Grant and the Shared Equity Act. The Bill was introduced into Parliament on Tuesday 23 May and after some strong debate, it has been adjourned for a 5 clear days. If passed the changes will commence on and from  1 July 2023 and the following criteria applies:

 

1.     First Home buyers wanting to take part in the scheme must reside in the purchased home as their principal place of residence for a period of at least 12 months to be eligible for the exemption

2.     The threshold will be raised up to the value of $800k for a full exemption of the Stamp Duty payment and if property is purchased over $800k, a partial exemption is available all the way up to the value of $1 Million. Anything over this price will incur the full duty amount payable directly to revenue NSW.

3.     The First Home Buyers Choice Act will cease after the 1st July. First Home Buyers who wish to take advantage of this Scheme will need to exchange on or before 30 June 2023. The property tax policy has been available to first home buyers on and after 11 November 2022 and was officially introduced on 16 January 2023. The option allows you to opt-in to pay an annual property tax on your first property to the value of up to $1,500,000. Anyone that opted in then would avoid paying the usual Transfer Duty payable upfront. If contracts exchange on or after 1 July 2023, this scheme will be invalid for that purchase.

 

If the Bill is passed through Parliament, these changes will be helpful for First Home Buyers to assist in being able to save more money for their deposit without the need to pay more funds for the stamp duty, this will then allow First Home Buyers borrowing capacity to increase and possibly save more money on Lenders Mortgage Insurance (LMI) fees.

 

Revenue NSW will have more information about the changes once there has been a decision made. Information will be up towards the end of June 2023.

 

If you would like any further information in respect to the changes that may be upcoming, please contact one of our friendly staff on 02 4396 4895 or 02 4067 9871

 

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