Buyers can pay upfront stamp duty or annual fee

With Lidcombe among the top 20 suburbs that have already taken advantage of the Government-assisted grants, duty exemptions and concessions, the First Home Buyer Choice, which was announced in the 2022-23 NSW Budget as part of a $2.8 billion housing package, should open few more doors for buyers when it starts in January
NSW Treasurer Matt Kean says eliminating the upfront cost of stamp duty can help first home buyers shave years off the time it takes to save a deposit.
“This is all about giving first home buyers the power to choose an alternative to upfront stamp duty,” Mr Kean said.
“We want to remove one of the barriers to entering the property market and help first home buyers realise the great Australian dream of home ownership sooner.”
Under the First Home Buyer Choice, eligible first home buyers will have the choice of a traditional upfront payment or a smaller annual property fee for properties with a purchase price of up to $1.5 million.
Around 84 per cent of residential property transactions across NSW are below the $1.5 million threshold.
First home buyers who opt into the property tax, will pay an annual fee of $400 plus 0.3 per cent of the land value of the property for the time they occupy the property as their principal place of residence. The property will not be locked into the scheme if it is sold.
Minister for Homes, Anthony Roberts, says the Government is also looking at different ways we can boost housing supply.
“We will leave no stone unturned when it comes to initiatives that will help more people in NSW enter the market and own their own home,” he said.
First Home Buyer grants, duty exemptions and concessions will continue alongside the stamp duty option.