Under the new scheme, first-time home buyers will be able to choose between an upfront payment or a lower annual property tax if they buy property up to the $1.5 million threshold.
First-time home buyers in the state are already eligible to apply for a full stamp duty exemption for properties up to $650,000, or a concession on properties between $650,000 and $800,000.
Under the new initiative, first-time home buyers who opt for the tax will pay an annual property rate of $400 plus 0.3% of the property’s assessed value. The new allowance is expected to be used by around 55,000 people per year.
The 2022-2032 state budget provides $728.6 million over the next four years to account for the expected revenue shortfall.
Mr. Perrottet has made it clear that he wants to move to a property tax system for the majority of buyers of goods in the statebut conceded prior to this publication that it would require federal support.
Under the changes, the property will not be locked into the scheme if it is sold, although speaking of his wider reform plans, Mr Perrottet said he would support a system in which all houses pass property tax in perpetuity once a year. the owner agrees.
The Premier described the move as a step that would ‘reduce barriers to home ownership for first-time home buyers looking for a home of their own’.
“The First-Time Home Buyer’s Choice will remove one of the biggest up-front costs of buying a home and help provide a brighter future for first-time home buyers,” he said. he declares.
Along with state treasurer Matt Kean, Mr Perrottet noted that this was seen as a way to encourage home ownership earlier in life.
“Over the past two decades, the share of first-time home buyers under the age of 35 has fallen from 67% to 61%. Increasing home ownership is part of this government’s efforts and ambition to help families in difficulty,” said Mr. Perrottet.
Mr Kean added: ‘We know that first-time home buyers are forced into the property market later in life and this reform will make the property market more accessible for them.’
“It will mean that more NSW residents will move into their first homes at an earlier age and achieve the great Australian dream of home ownership,” added Mr Kean.
Planning Minister and Housing Minister Anthony Roberts noted that this was part of a largest set of measures included in the latest budget aimed at solving the state’s housing crisis.
“This government will use every lever at its disposal – including taxation, planning, procurement or working with the Commonwealth – to give more people in New South Wales the opportunity to own their own home,” Mr. Roberts said.
Legislation establishing property tax will be introduced later this year, with the aim of allowing eligible first-time home buyers to apply to opt in to property tax from January 16, 2023.
Property tax, also known as property tax, is the fee paid when buying real estate owned by a natural person or another legal entity.
Property tax is a state tax calculated and paid for the ownership of land or property.
Stamp duty is a tax imposed on the purchase of a property depending on its price, location and the purpose of the loan.