Changes to First Home Buyer Support: What You Need to Know

As the real estate market continues to evolve, it's crucial for first home buyers to stay informed about the latest updates and changes.

From 1 July 2023, the transfer duty exemption threshold for new and existing home purchases by eligible first home buyers will increase from $650,000 to $800,000, and the concessional rate will increase from $800,000 to $1 million.

The Government is also closing off access to First Home Buyer Choice (FHBC).

Purchasers who exchange contracts on or before 30 June 2023 have up until settlement to opt-in to FHBC. From 1 July 2023 there will be no option to choose between property tax and transfer duty on new purchases.

Customers who have opted into FHBC will continue to pay property tax for as long as they own that property and will remain exempt from transfer duty on that purchase.

First homebuyers purchasing a home for $1 million or more on or after 1 July 2023 are ineligible for transfer duty exemptions or concessions and will be required to pay transfer duty.

Additionally, the residence requirement will change for the following:

First Home Buyers Assistance scheme

First Home Owner grant

Deferral of transfer duty payment for off the plan transactions

Exemptions for tenants of the Department of Housing and Aboriginal Housing Office

For contracts entered into on or after 1 July 2023, purchasers under the above schemes, grants or exemptions must move into their homes within 12 months of settlement and live in the property for a continuous 12-month period to satisfy the residence requirement.

Source - revenue.nsw.gov.au