First home buyers in New South Wales will be able to avoid paying stamp duty when they buy a property from January 16 next year, under a new government plan.

Instead of paying the lump sum, eligible first home buyers purchasing properties for up to $1.5 million will be able to choose to pay an annual property tax instead of stamp duty.

Stamp Duty Property

The property tax will only be payable by first home buyers who choose it, and will not apply to subsequent purchasers of a property.

The annual property tax payments will be based on the land value of the purchased property.

The property tax rates for 2022-23 will be:

  • $400 plus 0.3 per cent of land value for properties whose owners live in them
  • $1,500 plus 1.1 per cent of land value for investment properties.

These tax rates will be indexed each year so that the average property tax payment rises in line with average incomes.

“We want to lower the barriers to owning a home for first home buyers seeking a place of their own,” Premier Dominic Perrottet said.

In the past two decades, the share of first home buyers under 35 years of age has declined from 67% to 61%.

Lifting home ownership is part of this Government’s efforts and ambition to help families who are feeling the squeeze.

The First Home Buyer Choice will remove one of the largest upfront costs of buying a home and help deliver a brighter future for first home buyers.

Existing stamp duty concessions for first home buyers are also still available for purchases of up to $800,000.

Stamp Duty

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