If you’re a first home buyer in New South Wales, one of the costs you’ll need to factor into your budget is stamp duty. However, the good news is that the NSW government offers a stamp duty exemption or concession for eligible first home buyers. In this blog post, we’ll explain what the stamp duty exemption or concession is, who is eligible for it, and how much you can save.
What is stamp duty?
Stamp duty is a tax levied by state and territory governments on certain transactions, including property purchases. The amount of stamp duty you pay depends on the value of the property and the state or territory in which it is located. In New South Wales, the stamp duty rate ranges from 1.25% to 7% of the property’s value.
What is the stamp duty exemption or concession for first home buyers in New South Wales?
The stamp duty exemption or concession is a government initiative designed to help first home buyers enter the property market. Eligible first home buyers can receive a full exemption or partial concession on the stamp duty payable for their first home purchase.
How much can I save with the stamp duty exemption or concession?
The amount you can save with the stamp duty exemption or concession depends on the value of the property you are purchasing. In New South Wales, eligible first home buyers can receive a full exemption from stamp duty if the value of the property is below $800,000. For properties valued between $800,000 and $1 million, eligible first home buyers can receive a partial concession on the stamp duty payable.
Who is eligible for the stamp duty exemption or concession for first home buyers in New South Wales?
To be eligible for the stamp duty exemption or concession in New South Wales, you must meet the following criteria:
- You must be a natural person (not a company or trust).
- You must be at least 18 years old.
- You or your spouse must not have previously owned a home in Australia.
- You must be buying a new or existing home.
- The value of the property must not exceed the cap.
- You must move into the property within 12 months of the completion of the transaction.
- You must live in the property for a continuous period of at least six months, starting within 12 months of the completion of the transaction.
- You must be an Australian citizen or permanent resident.
It’s important to note that the stamp duty exemption or concession is not means-tested, so your income or savings do not affect your eligibility for the exemption or concession.
How do I apply for the stamp duty exemption or concession?
To apply for the stamp duty exemption or concession in New South Wales, you need to complete an application form and submit it to your solicitor or conveyancer. Your solicitor or conveyancer will then submit the application to the Office of State Revenue on your behalf.
It’s important to note that you must apply for the stamp duty exemption or concession within three months of the completion of the transaction. If you miss this deadline, you may not be eligible to receive the exemption or concession.
In conclusion, the stamp duty exemption or concession is a government initiative designed to help first home buyers enter the property market. Eligible first home buyers in New South Wales can receive a full exemption or partial concession on the stamp duty payable for their first home purchase. To be eligible for the exemption or concession, you must meet the eligibility criteria outlined by the Office of State Revenue and apply within three months of the completion of the transaction.
