The NSW Premier Chris Minns is changing the rules for first home buyers in the state.
It comes just six months after new laws came into effect under former Premier Dominic Perrottet that gave first home buyers the option between stamp duty or an annual land tax. The choice between these options will now be abolished.
Perrottet lost the NSW state election in March, with Premier Chris Minns now in power.
Perrottet’s old policy
The Perrottet Government introduced a scheme that gave first homebuyers a choice between paying stamp duty or an annual property tax.
Stamp duty is paid once at a property’s point of sale. It was often seen as an extra obstacle to buying a property, as it required greater savings.
The annual property tax option was a smaller payment, but would take longer to pay off. First home buyers purchasing a house up to $1.5 million were eligible for the scheme.
What is Chris Minns’ new policy for first home buyers?
The NSW Government plans to abolish the previous scheme by the start of July. They will cut the annual property tax option, and instead reduce the price of stamp duty paid by first home buyers on properties under $1 million.
Minns’ new policy will make properties up to $800,000 exempt from paying any stamp duty. This is a rise from the previous $650,000 threshold.
The cost of stamp duty will also be reduced for properties between $800,000 and $1 million.
NSW Shadow Treasurer Damien Tudehope accused the Government of “breaking the hearts” of first homebuyers on Monday. He called it a “regrettable circumstance”.
The Opposition will assess legislation on the policy when it comes to them. They also plan on speaking to the crossbench about the draft laws.
Tudehope said that 7,800 first homebuyers have chosen to pay the property tax over stamp duty since the Coalition’s scheme began in November.