From January 2023, eligible first home-buyers in NSW will be able to choose between annual land tax and the upfront stamp duty.
The scheme, called First Home Buyer Choice, includes an online calculator that will help buyers compare their options.
For properties with a purchase price of between $650,000 and $1.5 million, buyers will have the choice of a smaller annual property payment or a traditional upfront payment for properties.
The annual property payment would be a $400 annual fee plus 0.3 per cent of the land’s value when they purchase a property.
The calculator can be accessed through the Service NSW website.
Premier Dominic Perrottet said this reform and should help first home-owners by shaving years off the time it takes them to save for a deposit.
“Home ownership is the investment that starts paying dividends from the moment you walk through your front door for the first time and we don’t want people to have to wait an extra couple of years to reap those benefits,” Mr Perrottet said.
Treasurer Matt Kean said the calculator will help first-home buyers decide for themselves which pathway to home ownership best suits their financial circumstances and personal aspirations.
“Treasury analysis indicates half of all owner-occupiers sell their home within 10.5 years, with first home buyers likely to sell even sooner.
“That means for the majority of first home buyers that don’t already receive stamp duty assistance, First Home Buyer Choice will not only allow them to break into the property market earlier, but pay less overall,” Mr Kean said.
Legislation for the First Home Buyer Choice, which was announced in the 2022-23 NSW Budget as part of the Government’s integrated $2.8 billion housing package, will soon be introduced into Parliament.