From July 1 2023, first-home buyers in NSW will skip paying hefty stamp duty fees on certain properties.
The reduced stamp duty rates on homes valued at $800,001 to $1m will operate on a sliding scale, with the benefits reducing the pricier a property is.
Under the new rates, an $850,000 property will incur a stamp duty tax of $10,023 instead of $33,340 – saving buyers $23,318.
Homeowners will save just $1555 under new concessions on a home purchased for $990,000, with stamp duty reduced from $39,640 to $38,086.
Currently stamp duty exemptions only apply to homes under $650,000.
Labor has indicated an expansion of the mandatory occupancy duration for first-home buyers to qualify for assistance programs, from six to 12 months, a move designed to enhance the integrity of these measures.
Based on the latest government data, the surge of $150,000 in stamp duty exemptions could allow buyers to venture into neighborhoods like Cambridge Park, North St Marys, Richmond, and Werrington, where the median house value ranges from $650,000 to $800,000.
Furthermore, buyers could also explore apartment options in locales such as Ashfield, Padstow, Arncliffe, Kogarah, Petersham, Epping, and Sutherland.
The new scheme coincides with the retirement of the First Home Buyers Choice, which allowed vendees to opt between paying stamp duty or an annual property tax on homes up ti $1.5m.
However grandfather clauses mean those who purchased under the scheme will continue with the arrangement until they sell their property.