First Home Buyer Choice now gives first home buyers the option between paying a smaller annual property tax each year, instead of a lump some stamp duty payment at purchase time.
If you’re an eligible first home buyer looking for a property up to $1.5 million, the program can lower the upfront costs of your purchase and cut up to 2 years off the time needed to save for a deposit, fast tracking your way to a new home.
So what’s the difference?
Stamp duty
– Upfront payment
– Paid at the time of buying your home
– Calculated as a % of the purchase price
– Rates vary depending on the value
Annual Property Tax
– Based on the land value of the property
– $400 plus 0.3% of land value for properties whose owners live in them
– $1500 plus 1.1% of land value for investment properties.
Existing stamp duty exemptions and concessions for first home buyers will continue to apply for eligible purchases of up to $800,000.
The program has now been backdated to start from 11 November 2022, buyers can apply to opt into annual property tax and have their stamp duty payment refunded within 10 business days.
For more details on the fine print please speak to your financial adviser/ accountant.
