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Changes Effective from 1 July 2023
The changes came into effect from 1 July 2023 and apply to contracts exchanged on or after 1 July 2023.
Exemption and Concession Threshold Increases
As of 1 July 2023, eligible first home buyers can now apply to receive an exemption from paying transfer duty on new and existing homes up to $800,000.00, up from the previous $650,000.00.
First home buyers may also apply for a concessional rate of duty for purchase prices up to $1,000,000.00, up from the previous cut off amount of $800,000.00. The concessional rate is on a sliding scale which the concession decreasing as the purchase price increases.
Expanded Market for First Home Buyers
The increased thresholds for the exemption and concessional rate will capture a greater market of first home buyers.
Amended Residence Requirement
In addition to expanding the thresholds, the changes have also amended the residence requirement, which must be satisfied by buyer as part of the eligibility criteria for the Scheme. Previously, a first home buyer needed to move into the property within 12 months from the date of settlement, and then live in the property as their principal place of residence for a continuous period of 6 months. However, now you must live in the property as your principal place of residence for a continuous period of at least 12 months, commencing within the 12 months from the date of settlement.
End of First Home Buyer Choice Scheme
Additionally, the First Home Buyer Choice Scheme has come to an end. This Scheme allowed first home purchasers to opt in for an annual tax rather than paying up front duty. This is no longer an option.
Contact Information for Assistance
If you are a First Home Buyer looking to purchase a home and would like more information, contact us on 4288 0150 or [email protected] today.
Lorri is a director of PDC Law. Lorri combines excellent technical expertise with a common-sense approach to best represent her clients. She is one of few Accredited Specialists in Commercial Litigation in the Illawarra and Shoalhaven. This accreditation is testament to Lorri’s expert knowledge and skill in dealing with commercial disputes. In 2019 Lorri was awarded Regional Lawyer of the Year by Women Lawyers Achievement Awards.
